Is Tesla's Bitcoin Liquidation Impacting The Crypto Market?

Tesla just released its Q2 earnings report. According to the report, the company sold $75% of its Bitcoin (BTC) assets, for a total of around $936 million.

Additionally, due to changes in the carrying value of its cryptocurrency assets, Tesla recorded $170M in impairment losses for the six months that ended on June 30, 2022. For the same, the company saw gains of $64 million. However, for the six months that concluded on June 30, 2021, Tesla realized gains on the conversion of their digital assets of $128 million.

The company transferred 75% of its holdings into fiat, according to the statement. It does not, however, specify which crypto it is referring to. As Tesla was the second-largest currency holder, it is likely that the majority of digital assets were Bitcoin. elon musk elon musk ceo of tesla, founder and ceo of spacex, founder of the boring company at tesla, spacex Elon Musk was an enthusiastic cryptocurrency believer, quivering the crypto world through his sparkling tweets. He has a complex relationship with cryptocurrencies. His tweets solely are responsible for the crypto volatility. Musk splendidly purchased $1.5 billion in the king of cryptocurrency. He was born on June 28, 1971, and is based in Pretoria, South Africa. His mother is Maye musk and his father is Errol musk, he is a South African electromechanical engineer, pilot, sailor, consultant, and property developer.
 
He graduated from the University of Pennsylvania, earning a bachelor’s degree in Arts and physics, and the Wharton School, earning a bachelor’s degree in science, and economics. Musk was honored by Axel Springer Award, an annual award given to remarkable personalities who are extremely innovative, build new markets and change markets, shape culture, and confront their social responsibility.
 
In 1995, Elon Musk and Greg Kouri founded a web software company called ZIP2. The company developed and marketed an Internet city guide for the newspaper publishing industry, with maps, directions, and yellow pages.X.com and PayPal: in 1999, he co-founded X.com  which is an online financial service and email payment company. Space X: on 14, March 2002 he founded space x company which provides space transportation services.
 
On July 1, 2003, he founded TESLA. Tesla is an electrical vehicle and clean energy company which designs and manufactures electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and so on. His other activities involve SolarCity and Tesla Energy, Neuralink, the boring company, Managerial style and treatment of employee Hyperloop, openAI music, and ventures. Etc. he made $165 by selling PayPal to eBay. And was first listed on the Forbes Billionaires List in 2002, with a total net worth of $2 Billion. [email protected] EntrepreneurSales & MarketingCrypto and Blockchain Expert Followers : 0 View profile , the company’s CEO, did, however, affirm on Twitter that he had not sold any of the Dogecoin (DOGE) holdings.

According to Coindesk, tesla tesla E-Commerce Followers : 0 View profile  Chief Financial Officer Zach Kirkhorn said, “converted a majority of our bitcoin holdings to fiat for a realized gain, offset by impairment charges on the remainder of our holdings, netting a $106 million cost to the [Profit and Loss Statement] included within restructuring and other.”

For How Much did Tesla it Bitcoins?

According to the SEC filing, Tesla sold its Bitcoin or other cryptocurrency holdings before June 30. On the other hand, it is unclear exactly when Tesla sold their cryptocurrency.

Tesla bought its first bitcoins in the first quarter of 2021 for $1.5 billion but hid the average price paid. Later in the first quarter, the corporation sold a 10% portion of its holdings in bitcoin, increasing its earnings by $272 million. Until the most recent quarter, it hadn’t increased or decreased its stakes. 

Although the company withheld the selling price for its bitcoin in the second quarter, a quick calculation reveals that the average price would be roughly $29,000 per bitcoin, saving Tesla from having to take a significantly larger impairment charge. About $18,700 was the price of bitcoin at the end of the second quarter.