Bitcoin price rallies despite Tesla selling 10% of its investment

Posted: 27 April 2021 3:24 pm

Tesla claims to have raked in a handsome AUD $130+ million profit thanks to its recent AUD $1.93 billion Bitcoin investment

  • Bitcoin has surged by as much as 10% over the course of the last 24 hours
  • Tesla liquidated 10% of its BTC holdings
  • Tesla's CFO recently reiterated his company's confidence in Bitcoin's long term future.

As per a statement released yesterday, Elon Musk-led electric vehicle and clean energy company Tesla announced that it had been able to rope in a cool AUD $133 million profit thanks to its cryptocurrency investment that was made earlier this year.

Following the announcement, Bitcoin proceeded to rise from a relative low of around AUD $60,000 to as much as $70,000 within a matter of hours, thereby showcasing gains of nearly 10%. At press time, flagship digital currency is trading at $69,300.

Not only that, in the wake of these developments, Tesla CFO Zach Kirkhorn reaffirmed his company's faith in the digital currency market, adding:

"We do believe long-term in the value of Bitcoin. It is our intent to hold what we have long-term and continue to accumulate Bitcoin from transactions from our customers as they purchase vehicles."

Tesla made its foray into the digital currency market in February, investing a whopping AUD $1.93 billion into Bitcoin. Following its decision to buy the flagship asset, the value of BTC rose from AUD $48,780 to AUD $55,000 within a matter of minutes.

Lastly, it is also worth mentioning that Tesla is currently allowing its users to buy its various offerings in crypto. For example, Tesla Model 3 — one of the company's entry range vehicles — can be purchased for a flat sum of 1 BTC. Not only that, other mainstream players — including PayPal, Venmo, Square, Visa — are also allowing their users to facilitate their digital transactions using various digital assets.

Tesla liquidates some of its BTC holdings for liquidity purposes

Earlier today, Elon Musk announced that his company had sold 10% of its Bitcoin holdings in order to "prove the cryptocurrency's liquidity as an alternative to holding cash" as part of its balance sheets.

Elon musk on twitter

However, he was quick to assure his social media followers that he had not sold any of his personal BTC and that he is still extremely bullish about the future of this yet nascent space.

Lastly, it should be pointed out that Musk's above stated reply came in response to a tweet issued by Barstool Sports president Dave Portnoy where he insinuated that the tech moghul had been pumping Bitcoin online so as to rake in short term profits.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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