Elon Musk: Tesla Sold BTC to Demonstrate Liquidity as a Cash Alternative

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According to Bloomberg, Elon Musk stated that Tesla Inc. sold 10% of its Bitcoin shares to show the cryptocurrency‘s liquidity, but that he maintained his personal investment.

Tesla’s earnings report indicated that the company – which purchased more than $1 billion worth of the tokens earlier this year – earned $101 million from the auction.
Musk said on Twitter that Tesla was attempting to “prove Bitcoin’s liquidity as a viable solution to keeping cash on the balance sheet.”

Musk made the remarks in response to comedian Dave Portnoy’s allegations that Musk profited from a Bitcoin pump and dump encouraged by his public support for the crypto.

Elon Musk does not sell bitcoin, Tesla does

Musk responded to Portnoy’s point, stating, “Tesla sold 10% of its assets basically to demonstrate the liquidity of Bitcoin as an option to keeping cash on the balance sheet.”

“I have not sold any of my bitcoin”

Elon Musk

Through its interest in Bitcoin, the autonomous car manufacturer pushed cryptocurrency into the radar of corporate treasurers worldwide.

Although many continue to see Bitcoin as too volatile to equate to gold, Tesla’s Chief Financial Officer Zachary Kirkhorn said during an earnings call that the organization trusts in Bitcoin’s long-term value.

Tesla Inc. earned a profit of $272 million. On the first quarter of 2021, the company intends to sell a majority of its Bitcoin shares.

Following the disclosure in February of this year of a strategic purchase of $1.5 billion of Bitcoin. The bull run in the cryptocurrency industry was worth 7.7 percent of the company’s total cash balance at the period.

Tesla revealed the very same month that it will begin taking Bitcoin for car payments. It is worth noting that the assets would be held in Bitcoin rather than translated to cash.

Elon Musk has already refrained from revealing his Bitcoin holdings, however, his most recent tweet indicates he is reluctant to sell.

BTC has added 3% in the last 24 hours and is reportedly trading at $53,300.

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