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Elon Musk says Tesla sold Bitcoin to prove its liquidity as alternative to cash

Bitcoin, the world's largest cryptocurrency, has gained the attention of Wall Street after a sharp spike in the price in 2020.

April 27, 2021 / 01:54 PM IST
Elon Musk clarified that he has not sold any of his personal Bitcoin holding. [Image: Reuters]

Elon Musk clarified that he has not sold any of his personal Bitcoin holding. [Image: Reuters]


Tesla Chief Executive Officer (CEO) Elon Musk said the electric vehicle maker had sold 10 percent of its bitcoin holding to prove the cryptocurrency's liquidity as an alternative to cash.

Tesla's earnings statement on April 26 stated that it generated $101 million by selling some of its Bitcoin tokens, which it had purchased for over $1 billion earlier in 2021.

Also read: Tesla beats quarterly revenue expectations on strong deliveries

Musk clarified that he has not sold any of his personal Bitcoin holding.

"I have not sold any of my Bitcoin. Tesla sold 10 percent of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet," Musk said in a reply to a Twitter user.

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In an earnings call, Tesla's Chief Financial Officer (CFO) Zachary Kirkhorn said that the company believed in Bitcoin's long-term value, CNBC reported.

The carmaker had in February said it bought $1.5 billion worth of Bitcoin. Tesla also said it would soon start accepting bitcoin as a form of payment for its vehicles.

Bitcoin, the world's largest cryptocurrency, has gained the attention of Wall Street after a sharp spike in the price in 2020.

The price of Bitcoin jumped almost 10 percent on April 26 to trade at over $53,700, after the report of JPMorgan preparing such a fund.
Moneycontrol News
first published: Apr 27, 2021 01:54 pm

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