Tesla founder Elon Musk commented on the sale of Bitcoin. Information about which was contained in the financial statements published by the company on Monday.
Elon Musk has assured the crypto community that he hasn’t sold any of his BTC. Despite the fact that his Tesla company is making a profit from it’s recent Bitcoin purchases.
Pump and dump for the purpose of making money?
In winter, it became known that the American electric car manufacturer invested $ 1.5 billion in BTC. In addition, the company announced that it would accept cryptocurrency when selling electric vehicles. Stressing that it would store funds in BTC, and not convert to cash.
And yesterday’s report from the company shows that Tesla sold 10% of its Bitcoins. Generating net revenue of $ 272 million.
Thus, after the information about Tesla’s sale of a part of BTC appeared, some commentators began to accuse Musk of “pumping and dumping” Bitcoin in order to earn money. By some estimates, Tesla made $ 101 million from the Bitcoin drain in a month. More than ever by selling its cars. This is stated in the financial results of the automaker for the first quarter.
So, the creator of the Barstool Sports platform Dave Portnoy accused Elon Musk of allegedly taking advantage of the rise of Bitcoin this year and selling the cryptocurrency at highs. Musk denied this, emphasizing that the company did this only in order to prove the liquidity of the cryptocurrency, as an alternative tool for preserving capital. In addition, Elon Musk added that he kept all his personal Bitcoins.
Zachary Kirkhorn: Tesla believes in Bitcoin’s long-term prospects
Tesla CFO Zach Kirkhorn confirmed during a conference call that 10% of Tesla’s Bitcoins have been sold.
With his comment, Musk confirmed the words of Tesla CFO Zach Kirkhorn.
While Tesla may have had several reasons to lock in some of its Bitcoin position, including striving to improve its quarterly results, the liquidity issue has previously piqued Musk’s interest. So, last December, he asked MicroStrategy CEO Michael Saylor if it was even possible to invest more than a billion in Bitcoin.
Kirkhorn also announced during yesterday’s conference call: “We were able to quickly form the first position. When we sold in March, we were also able to do it very quickly. We believe that this kind of global liquidity and the ability to quickly enter and exit the market are extremely important for the business from a risk management perspective”.
In addition, the company’s director Zachary Kirkhorn said that Tesla believes in the long-term prospects of Bitcoin.
And the structure of Musk’s answer suggests that he has personal investments in Bitcoin. Which, unlike Tesla, he is not required to report. And as we can see, his last tweet suggests that he doesn’t want to sell them.
Note that over the past 24 hours, BTC has grown by 8% and is trading at $ 55,000.