Tesla impressed everyone when it still made a huge profit, but that didn't stop it from selling a heap of its bitcoin stake.
👉 Background: We all know Tesla is the electric car company, even though competitors are catching up these days.
👉 What happened: Tesla, like many car manufacturers, has faced major operational challenges since the start of the pandemic like skyrocketing lithium prices, the global chip drought, and extended lockdowns in China.
👉 What else: So everyone was pretty impressed when Tesla revealed it made a profit of US$2.26 billion for the June quarter. But the biggest announcement was that Tesla has sold 75% of its bitcoin stake!
💡This is a case of one step forward, two steps back for bitcoin. Until 2020, Bitcoin was mostly held by individuals. Ya see, corporations, institutional investors and central banks just didn’t consider bitcoin as a legitimate asset.
💡They also didn’t see bitcoin as a fiat currency, like the US dollar or Euro. But when companies like Tesla and Block purchased bitcoin, people started listening up.
💡Tesla invested $1.5 billion USD into crypto. But now 18 months after Tesla's big bitcoin investment, its pulling out 75%. It will be interesting to see if other companies follow suit.
Sign up for Flux and join 100,000 members of the Flux family
