Tesla Sold 75% Of Its BTC Savings. Experts Urge Not To Panic

Tesla, an electric carmaker, sold about 75% of the Bitcoins it owns, raising an estimated $936 million, according to a company report.

Tesla CEO Elon Musk noted that so many cryptocurrencies had to be sold because of the need to increase liquidity during the period of anti-COVID restrictions in China.

He assured that the sale of BTC by the company “should not be taken as a verdict on Bitcoin.”

“The reason we sold some of our bitcoin holdings was because we didn’t know when Covid restrictions in China would ease. So it was important for us to maximize our cash position,” he said.

Moreover, according to him, the company is “definitely open to increasing Bitcoin holdings in the future.”

This practice is a fairly typical strategy for companies to improve cash flow during an economic downturn. Equity trading expert at the Finder comparison site Kylie Purcell explained that Tesla is not the only company that decided to capitalize on cash:

“As the world moves towards an economic downturn and possibly a recession, it is not uncommon for investors and companies to shift capital from more volatile assets to fiat currency.”

She also added that although the price of bitcoin fell after the announcement, there are already signs of a recovery.

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