May Tesla Accepts The Responsibility For 1B Crypto Liquidation

Jamal Molla
Written By Jamal Molla
I write about cryptocurrency, with a special interest in NFT and metaverse in particular.

Tesla, the world’s largest automotive company, recently announced the release of its second quarter earnings. The automobile company stated that its management decided to sell over 75% of its Bitcoin (BTC) holdings, which amounted to approximately $936 million. In a statement released by Tesla’s head of media communication, the company also asserted that it has digital properties worth over $222 million as of June 30th. The worth of the digital properties has also been disclosed in the company’s SEC filing.

The announcement by Tesla suggests that the company’s management has adjusted around 75% of its crypto holdings. While the announcement didn’t specify a cryptocurrency, experts believe that the 75% adjustment is in Bitcoin (BTC) and Dogecoin (DOGE) holdings. Most of Tesla’s digital assets are in BTC and DOGE, as the company has been one of the biggest holders. In one of our previous posts, we mentioned Elon Musk Sells Off Most Tesla’s Bitcoin Holdings – Unlimited Tower. Elon Musk, the company’s CEO posted on Twitter recently that the company has not sold any of its Dogecoin (DOGE) holdings.

Additionally, Tesla acknowledged harm failures worth over $170M for the 6-month duration, which expired on June 30. According to the company, the harm failures were as a result of crypto instabilities and the volatile nature of the market. To balance the portfolio, the company invested additional $64 million to fight harm failures. It also adjusted its digital property worth during the 6-month by over $128 million.

The SEC filing suggests that the automobile giant traded its BTC holdings before the crypto wave that plummeted the prices of Bitcoin and other cryptocurrencies. Some experts believe that the action of Tesla to sell off some of its Bitcoin holdings caused the liquidation of the crypto market by almost $1 billion. However, there’s still no authorization whether or not the automobile company is responsible for the crypto market downturn.

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