- Tesla ultimately proved to be a poor investment, given the damage it suffered as a result of the unfavorable Bitcoin price movements.
Tesla sold Bitcoins worth $28,888
According to a number of sources, including Tesla’s financial conference, the revelation that Tesla had sold a sizable amount of its assets for a standard value of $28,888—a considerable 9 percent reduction from its initial entrance price of $31,620—had already caused a stir in the virtual currency market. According to Tesla’s preliminary profits report, the business liquidated $936 million worth of bitcoin at a price of $28,888. This report is in line with the dramatic decline in Bitcoin prices we witnessed in June when a series of insolvency drove BTC all the way down to the $17,800 mark.
Tesla chose to liquidate digital asset reserves was taken due to the absence of free cash flow, Musk informed himself. Musk’s firm held Bitcoin through all the ATH and ultimately sold it at a deficit. The reality that Tesla still has 25% of its Bitcoin and, according to Musk, plans to increase its assets in the coming years highlighted the non-Bitcoin-centric motivations for selling its ownership.
Is this a concern for the crypto market?
One of the primary drivers of the gains in Dogecoin and Bitcoin was Musk and his businesses, especially Tesla. The CEO of SpaceX is still optimistic about decentralized innovations and thinks that they will somehow play a role in shaping the future. Not to be overlooked is the fact that the absence of trading volumes and direct investment, which resulted in a lack of turbulence, contributes to the market’s comparatively tranquil response. The huge transaction itself was unable to significantly affect the market today since it was performed back in June when Bitcoin and other cryptocurrencies were trading at record lows.