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Elon Musk's electric vehicle maker has offloaded most of its BTC reserves, according to financial statements released on Wednesday.
Electric vehicle Maker Tesla sold the majority of its Bitcoin (BTC) holdings in the second quarter, in line with new financial disclosures published on Wednesday.
“As of early Q2, we converted approximately 75% of our Bitcoin purchases into Fiat currency,” Tesla said in its quarterly report. “Q2 conversions added $936 million in funds to our record.”
According to the financial report, Tesla’s net Bitcoin holdings have been relatively stable for three consecutive quarters. As of early March, Tesla has $1.261 billion worth of digital assets on its books. After the liquidation, the company now has $218 million in digital assets.
As Cointelegraph reported, the electric vehicle maker sold some of its BTC reserves in March 2021, raising $128 million. At the time, CEO Elon Musk explained that Tesla’s 10% stake sale was to “prove the liquidity of Bitcoin as an alternative to holding cash in spite of everything.” . ”
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Just two months ago, in January, Tesla became one of the largest Bitcoin holders after acquiring $1.5 billion worth of BTC. The acquisition was disclosed in a filing with the US Securities and Exchange Commission in February. At the time, Tesla also had plans to only accept payments in BTC, but those plans were later canceled due to concerns about Bitcoin’s energy use.
For its fiscal second quarter, Tesla reported adjusted earnings per share of $2.27 on revenue of $16.93 billion. The auto industry’s gross margins fell from the first quarter and a year ago due to Inflation and increased competition for electric vehicle parts, such as batteries.
