Tesla sold 75% of its Bitcoin reserves in Q2

Electric carmaker Tesla sold the majority of its bitcoin holdings during the second quarter, according to its latest financial disclosure released Wednesday.

Tesla said in its quarterly report: "As of the end of the second quarter, we had converted approximately 75% of the Bitcoin purchases into fiat currency. The redemption in the second quarter added $936 million to our balance sheet. cash."

According to financial reports, Tesla’s net bitcoin holdings have been relatively stable for three consecutive quarters. As of the end of March, the value of digital assets on Tesla's books was $1.261 billion. Following the liquidation, the firm now holds $218 million in exposure to digital assets.

As Cointelegraph reported, the electric car maker sold some of its BTC reserves in March 2021, realizing a net profit of $128 million. At the time, Tesla CEO Elon Musk explained that the sale, equivalent to 10% of Tesla’s holdings, was meant to “prove Bitcoin’s role as cash on the balance sheet.” liquidity of alternatives”.

Two months before that, in January, Tesla bought $1.5 billion worth of bitcoin, making it one of the largest corporate holders of bitcoin. The deal was disclosed in a filing with the U.S. Securities and Exchange Commission in February. At the time, Tesla also had plans to accept bitcoin as payment, but the plan was later scrapped due to concerns about bitcoin’s energy consumption.

In the fiscal second quarter, Tesla reported adjusted earnings of $2.27 per share on revenue of $16.93 billion. Automotive gross margins declined compared to the first quarter and the same period last year due to inflation and increased competition for electric vehicle components such as batteries.