Automaker Tesla and its CEO Elon Musk repeatedly told us that they have no intention of selling their Bitcoins. But the recent crypto market crisis seems to have changed their mind as the company sold 75% of its Bitcoin holdings in recent months, according to a second-quarter report published on Tuesday.
The reports show that Tesla liquidated 75% of its Bitcoin for approximately $936 million. The company’s investments in this particular cryptocurrency were revealed to be around $2 billion in February, with the number of actual coins standing at approximately 43,000.
Speaking about the sale, Musk said that Tesla’s decision was prompted by the slowdown of operations in China. Its Shanghai factory was at one point closed due to COVID lockdowns in the country, which dealt a big blow to the automaker.
“The reason we sold a bunch of our Bitcoin holdings was that we were uncertain when the COVID lockdowns in China would alleviate,” Musk explained. “So it was important for us to maximize our cash position, given the uncertainty of COVID lockdowns in China.”
After it was revealed that Tesla moved the majority of its Bitcoins, the cryptocurrency lost almost 4% of its value. It is currently trading at around $22,479.50, which represents a 53% loss year to date.