- Telsa sold $272 million worth of bitcoins.
- Elon Musk believes that using bitcoin is a great idea to store cash that is not used on a daily basis.
Tesla tested bitcoin’s stability by selling a few blocks in the first quarter of this year. This liquidity test was conducted at the end of March and was a complete success for the automotive company. Although the digital asset market was panicked by this action, it received funding to develop institutional investments.
Tesla is testing the liquidity of BTC.
When Tesla opened its balance sheet to bitcoin earlier this year, it gave the market the biggest boost in history. The company has seen the value of its digital assets increase by 30% through news alone. Bitcoin gained $8,871 in less than 24 hours, sparking investor interest.
Although earnings were strong, the company said there were impairments in the first quarter. Tesla reveals in its earnings report that it sold $272 million of its shares in bitcoin. This liquidation has caused panic among investors in the cryptocurrency market.
Facing such action, Elon Musk, the CEO of the company, has responded to all the concerns of the fans of the plant. When investor Dave Portnoy questioned the company’s approach, accusing it of collecting assets and then forgetting about them, Musk responded:
I didn’t sell my bitcoins. The company sold 10% of its loans to show liquidity and use bitcoin as an option.
The car company confirms that BTC is reliable.
With this test, Tesla has demonstrated that investors can enter and exit the market without risk. The installation allows businesses to keep their money safe without incurring losses.
If bitcoin’s price fell after Tesla’s price, it would be a sign that the market is not credible. With these companies’ investments now backed by assets, massive institutional investments are expected. Many companies will consider investing in BTC because their cash flow will be stable.
Bitcoin: a liquid solution for passive income
Investing with Bitcoin offers liquid solutions for businesses to make passive profits. Without a price drop, an investor does not risk losing money on every transaction in the market. Since there is enough movement in the asset, this gives it stability so it will not affect its value if sold for $272 million.
Tesla recognized these limitations of bitcoin and benefited greatly from them. With the rise of bitcoin and the Tesla test, the market will see more demand from investors. In the coming days, the value of the asset may rise, which is a big advantage for joint ventures.
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