Tesla Sold 10% Of BTC Holdings In Q1 To Prove Liquidity

Tesla sold 10% of its BTC holdings in the first quarter of the year to prove liquidity as we can see more in our latest Bitcoin news today.

The Elon Musk-led vehicle manufacturer Tesla sold 10% of its BTC holdings after the recent billion-dollar purchase of the number one cryptocurrency in 2021. In the earnings call, Tesla stated that it sold $272 million worth of BTC in the first quarter of 2021. The price of the coin increased since the acquisition with the company’s BTC value growing to $2.72 billion which indicated that the company sold 10% of the holdings. According to the data, selling bitcoin helped the company make a $101 million positive impact.

So am I understanding this correctly? @elonmusk buys #bitcoin. Then he pumps it. It goes up. Then he dumps it and make a fortune. Listen I own 1 #Bitcoin but #bitcoin is exactly who we thought it was. Just don’t be last 1 #HODLing the bag.

— Dave Portnoy (@stoolpresidente) April 26, 2021

The company made the headlines back in February when it announced that it bought BTC worth $1.5 billion in January 2021. The BTC purchase at the time caused a spike in the price of the biggest crypto asset by market cap. Later in March, Tesla announced that it will accept BTC as a payment method for its vehicles. In the meantime, the company stated that the BTC received will never be converted to fiat. The BTC price saw a huge price dip over the previous weekend with the number one crypto trading at $47K after reaching an ATH of $65,000. Bitcoin is now trading a little over $53,000.

In the meantime, companies recently started adding BTC to their balance sheets or as a payment method on their platforms. For example, wine retailer Acker announced that it started accepting BTC, ETH, and DOGE as payment methods for its wines. The leading flexible workspace provider WeWork started accepting BTC, Ethereum, Paxos, and USDC for payment. Companies like Microstrategy have been on a BTC buying spree as well with the CEO of the company Michael Saylor stating that its non-employee directors will be paid in BTC. Commenting on the Tesla developments, we can see that the biggest BTC proponents were Max Keiser. He noted that the company’s move removed any concerns about the practical liquidity requirements for the companies listed.

As recently reported, Elon Musk announced on Twitter that Tesla starts accepting bitcoin payments for its range of cars. A BTC payment button appeared on the Tesla website as of today and Musk even added that the paid BTC will be retained in its original form and not converted to fiat currency but instead it will be added to the crypto reserves that the carmaker already holds.