Tesla Sold 10% of Its Bitcoin Holdings, Says Elon Musk

Elon Musk, CEO of Tesla, confirmed on Twitter that the world’s largest electric-car maker has sold around 10% of its Bitcoin holdings. The move was made to check the Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term of the world’s largest cryptocurrency.

According to the Tweet, Musk has not sold any of his Bitcoin yet. The latest comments from Musk came as a response to accusations of Dave Portnoy who criticized Tesla’s Bitcoin pump and dump moves.

“So, am I understanding this correctly? Elon Musk buys Bitcoin. Then he pumps it. It goes up. Then he dumps it and makes a fortune. Listen I own 1 BTC but bitcoin is exactly who we thought it was. Just don’t be last 1 HODLING the bag,” Portnoy Tweeted.

“I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of BTC as an alternative to holding cash on the balance sheet,” Musk replied.

In February 2021, Tesla revealed its $1.5 billion investment in the world’s most valuable digital currency. The company started accepting Bitcoin as a mode of payment for its products including Model S, Model 3, Model X, Model Y and Cybertruck.

Impact of Bitcoin Sale on Tesla’s Q1 Results

According to the latest financial results posted by Tesla, the company saw a positive impact of Bitcoin sales on its Q1 of 2021 results. The world’s largest electric-car maker generated net proceeds of $272 million from the recent BTC sale.

“Tesla seems to be selling around $56,000, and buying $33,500, gaining 272 million and making 101 million profit. Musk said that the sale was to prove the value of Bitcoin's liquidity. BTC has not been affected by the news and is still rising moderately,” crypto researcher Wu Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term mentioned on Twitter.

The world’s largest cryptocurrency is back above the $1 trillion market cap. The overall market cap of digital currencies is up by more than $100 billion in the last 24 hours.