Tesla Inc. (TSLA) sold 75% of its Bitcoin (BTC) holdings for $936 million in the second quarter ending June, details from the company’s quarter 2 results showed.
According to the electric carmaker, offloading the BTC came amid uncertainty over the company’s liquidity in the midst of Covid shutdowns in China.
Tron founder on Tesla’s BTC sale
While the news of Tesla’s BTC sale surprised many within the crypto space following CEO Elon Musk’s previous comments, Tron (TRX) founder Justin Sun says the sale might actually be “great news” for the world’s largest cryptocurrency.
In a tweet posted on Thursday morning, Sun outlined three reasons he feels Tesla selling might be “great news.”
According to Sun, the sale has removed the concern that the carmaker will dump its BTC holdings. Also importantly, completing a sale worth nearly $1 billion of Bitcoin is testament to the market’s liquidity and a perfect ad to all the big corporations.
3rd, Tesla completing @Bitcoin transactions shows a good precedence for all enterprises holding #BTC. We believe more big corps will buy in the future. Kudos to @elonmusk !
— H.E. Justin Sun🌞🇬🇩 (@justinsuntron) July 21, 2022
Tesla’s sale says nothing of Bitcoin fundamentals
Tesla first announced its Bitcoin purchase in February 2021, adding $1.5 billion worth of the flagship cryptocurrency to its balance sheet.
The company then sold 10% of their holdings in April, with market sentiment impacted as Musk announced his firm had paused accepting BTC for its cars. But in his latest remarks, Musk has maintained the sale doesn’t represent a “verdict on Bitcoin,” with Tesla open to future purchases.
Samson Mow, the CEO of Bitcoin firm JAN3 noted that Tesla had to sell their Bitcoin to avoid going red over the last quarter. This applied to every other seller during the downturn, he added. But the offloading has nothing to do with Bitcoin’s fundamentals. The JAN3 chief had earlier mocked Tesla’s sale, cynically noting that by buying high and selling low, the company was “showing [the market] how it’s done.”
Seriously though, Tesla had no choice but to sell or else they’d end up red last quarter. Almost everyone that sold this dip had no choice but to sell, and none of the reasons had anything to do with #Bitcoin fundamentals. I’d say we’re on the way back up and decoupling soon. https://t.co/pHbY6TIf2J
— Samson Mow (@Excellion) July 21, 2022
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