Tesla Inc. has sold 10 percent of its Bitcoin shares, according to Elon Musk, who stated that the primary goal was to demonstrate the token’s liquidity, while also stating that he has kept his cryptocurrency investment.
According to Tesla’s earnings reports, the company purchased more than $1 billion in tokens earlier this year and earned $101 million from the sale. Musk tweeted that Tesla was attempting to demonstrate bitcoin’s liquidity as a viable alternative to keeping cash on the balance sheet.
Long term value
With their investment in Bitcoin, the electric vehicle manufacturer forced cryptocurrencies onto the corporate treasury agenda across the world. Many others continue to regard the token as a riskier investment than cash. Tesla’s Chief Financial Officer, Zachary Kirkhorn, said on an earnings call that the company believes in Bitcoin’s long-term value.
Several strategists believe that Bitcoin and other tokens are more risky assets than legitimate cash alternatives. BCA Research Inc., for example, claims that Bitcoin fails as a store of value or a unit of account because of its uncertainty, despite the fact that these are normal functions of currency.
Supporter of cryptocurrencies
Musk, on the other hand, has been a vocal supporter of cryptocurrencies. He began to display his interest earlier, on occasion. Last month, he chose to announce that Tesla would begin accepting Bitcoin payments for its cars.
As of 12:16 p.m. in Tokyo on Tuesday, the world’s largest cryptocurrency was up 1 percent to $53765. It has, however, fallen since reaching a high of $64870 in mid-April. However, it is only seven times higher than in previous years.
Despite a first-quarter profit high, Tesla’s stock is down 3.1 percent in late trading after the company’s results were announced on Monday.