Tesla Sold $736 million worth of Bitcoin Holdings in the second quarter.

“As of the end of Q2, we have converted about 75% of our Bitcoin purchases into fiat cash,” Tesla said in its second-quarter earnings report, which was released on Wednesday. The company added $936 million in cash sales to its balance sheet.

“The reason we sold a bunch of our bitcoin holdings was because we were unknown when the Covid lockdowns in China would be lifted, so it was vital for us to optimize our cash position,” Musk said during the results call on Wednesday. This is not a verdict on bitcoin,“ he stressed, adding that ”Tesla is open to increasing its crypto holdings in the future.

Tesla completed the second quarter with $218 million in Bitcoin holdings, down from $2 billion in the previous three quarters.

The fair market value of Tesla's Bitcoin holdings hit $2.48 billion in the first quarter of last year and remained around $2 billion by the end of the year. While the corporation did not specify the price at which it sold its Bitcoins or the amount of its impairment, Bitcoin began the second quarter of this year at over $46,000 and closed the quarter around $19,000.

At the start of the second quarter, the firm estimated 42,000 Bitcoins. With the sale of 75% of those BTCs worth $936 million, Tesla's average selling price was around $29,000 per Bitcoin.

Bitcoin traded at over $18,700 at the end of the second quarter. This means that by selling earlier in the quarter, Tesla avoided a substantial impairment charge on its holdings.

Tesla revealed in February of last year that it had purchased $1.5 billion in bitcoin using its balance sheet funds. The company said in March of last year that it would soon accept the most popular and largest cryptocurrency as a means of payment for purchases of its electric vehicles. The news significantly increased the value of most cryptocurrencies and established Musk as the de facto crypto leader.

Tesla sold $272 million in Bitcoin holdings during Q1 2021 to show users that the cryptocurrency is a solid investment. The corporation stated that Bitcoin sales provided $101 million to its bottom line (profitability) and accounted for a reduction in operational expenses.

Bitcoin has shown to be a suitable place for the corporation to put cash that is not being used for everyday operations and earn a return on it.

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