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29 March 2024
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Tesla sold part of its Bitcoins in the first quarter of this year

  • Telsa sold $ 272 million worth of Bitcoin
  • Elon Musk believes that using Bitcoin is an excellent idea for storing cash not used daily

Tesla has tested the stability of Bitcoin by selling a part of its units in the first quarter of this year. This liquidity test was carried out at the end of March, being a total success for the automotive company. Although the digital asset market panicked at this action, it was lent to expand institutional investments.

Tesla tests liquidity of BTC.

When Tesla opened its balance sheet to Bitcoins at the beginning of the year, this gave the market the biggest rise in history. The company achieved that the digital asset rose 30% just by checking the news. In less than 24 hours, Bitcoin had earned $ 8,871, which increased its investment interest.

Although earnings were significant, the company reported that asset adjustments were made in the first quarter. In the earnings report, Tesla reveals that it sold $ 272 million of its Bitcoin shares. This liquidation has generated panic among investors in the crypto market.

Faced with such action, Elon Musk, CEO of the company, responded to all those concerns that fans of the asset had. When investor Dave Portnoy questioned the company’s move and accused it of boosting the asset and then forgetting it, Musk responded:

“I have not sold my Bitcoins. The company sold 10% of its credits as proof to show its liquidity and use Bitcoins as an option.”

The automotive company confirms that BTC is trustworthy

Tesla

With this test, Tesla demonstrated that investors could enter and exit the market without risk. The asset can safely keep the money of the companies without presenting losses.

If Bitcoin declined in value after the Tesla action, this would indicate that the market is not trustworthy. Now that the investments of these companies are backed with the asset, a massive institutional investment is expected. Many companies will consider investing in BTC because their cash positions will be stable.

Bitcoin: a liquid solution for passive income

Investments with Bitcoin give liquid solutions for companies to have passive profits. Without a slide in prices, the investor does not risk losing money for each transaction made in the market. As there are enough movements with the asset, this gives it stability, so it does not affect its value for 272 million dollars in sales.

Tesla has revealed these limitations in Bitcoin and, based on it, has obtained many benefits. With Bitcoin on the rise and Tesla tests, the market will have a greater demand from investors. For the next few days, the asset can increase in value, which is great for joint ventures.

.News Source

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