As the crypto industry is believed to be going through the crypto winter, digital assets face one sharp decline after another. Many investors feel bitter disappointment with crypto. This is why they are actively getting rid of crypto assets. Even such crypto-friendly companies like Tesla have lost faith. Tesla is backing away after BTC plunged considerably.
The electric car maker decided to offload 75% of its bitcoin, which was worth about $1 billion. According to the earnings report, investments in cryptocurrency turned out to be unprofitable for the company and significantly worsened its financial performance for the previous quarter. Tesla noted that it was upset about crypto investments as it bought a huge bulk of bitcoins at 28,000 per coin but sold it at 23,000. "The reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate so it was important for us to maximize our cash position. This should be not taken as some verdict on bitcoin," Elon Musk said. Notably, Tesla boss did not sell any of dogecoins, remaining an avid supporter of this asset.
Hence, Musk once again confirmed that a fall in revenue was the main reason for selling bitcoins. In the previous quarter, Tesla’s revenue plunged to $16.93 billion from $18.76 billion. Thus, it snapped a streak of record revenues for several consecutive quarters. Overall, Tesla invested $1.5 billion in bitcoins in March last year.