Tesla dumping 75% of its bitcoin doesn’t mean ‘a lot’, says world’s richest crypto billionaire — here’s why
The CEO of Binance is considering after news broke that electric car maker Tesla has emptied the majority of its Bitcoin (BTC) holdings.
In a new interview with Fox Business, Binance Chairman Changpeng Zhao Tells Host Neil Cavuto People shouldn’t read too deeply into Tesla CEO and crypto advocate Elon Musk who cashes in on Bitcoin heavily.
“He’s a smart guy but that doesn’t mean he owns all the valuable assets in the world. He probably doesn’t own many stocks of other companies, many other valuable cryptocurrencies, etc.
Just because he buys and sells some Bitcoin doesn’t mean that he buys Bitcoin it got better, or because he sold Bitcoin it gets worse. “
Here you are Tweet embed
– Susan Lee (@SusanLiTV) July 22 2022
“The fundamentals are there, the use cases are there, the user numbers are there, the community is there. The basic characteristics of Bitcoin haven’t changed because one person has bought or sold.
Nobody knows what are the reasons to sell it or buy it. Maybe I need the cash for Tesla or try to buy Twitter or something else, I don’t know. But that doesn’t mean much.”
Earlier this week, Tesla revealed that it sold 75% of its BTC holdings for $936 million in cash during the second quarter of 2022.
Musk explained the rationale behind the move on the company’s earnings call by saying:
“It is worth noting that the reason we sold off a bunch of our bitcoin holdings was because we weren’t sure when the Covid-19 lockdowns in China would ease.
So it was important for us to maximize our cash position, given the uncertainty of the Covid-19 lockdowns in China.
We are certainly open to increasing our Bitcoin holdings in the future, so this should not be taken as a judgment on Bitcoin.”
As of June 30, the total value of the remaining Bitcoin Tesla was $218 million.
Bitcoin is currently down 1.45% in the past 24 hours, trading at $22,731.
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