{"id":23539,"date":"2022-07-21T16:44:06","date_gmt":"2022-07-21T16:44:06","guid":{"rendered":"http:\/\/egrowonline.com\/?p=23539"},"modified":"2022-07-21T16:44:06","modified_gmt":"2022-07-21T16:44:06","slug":"tesla-cashes-out-75-of-its-bitcoin-after-a-year-of-crypto-turbulence-npr","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=23539","title":{"rendered":"Tesla cashes out 75% of its Bitcoin, after a year of crypto turbulence : NPR"},"content":{"rendered":"


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\n Tesla has pulled back from its $1.5 billion investment in Bitcoin, which it announced in early 2021. Here, a Bitcoin ATM is seen last year inside a New York City store.<\/p>\n

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Michael M. Santiago\/Getty Images<\/p>\n

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Michael M. Santiago\/Getty Images<\/p>\n

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What a difference a year makes. After making big plays in Bitcoin in 2021, Tesla jettisoned $936 million worth of the cryptocurrency in the second quarter of 2022, trimming its Bitcoin holdings by 75%, the company said in new investor filings. <\/p>\n

Tesla aggressively embraced Bitcoin in 2021, investing $1.5 billion in the currency as CEO Elon Musk touted Bitcoin’s advantages over standard fiat currency. For part of the year, Tesla customers could buy cars using Bitcoin. <\/p>\n

But in recent months, Tesla’s profitability was affected by “Bitcoin impairment,” it said in its financial summary<\/a> of the second quarter. <\/p>\n

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Bitcoin soared to delirious highs in 2021<\/h3>\n

The closely watched car company’s moves fueled a surge of interest in the cryptocurrency, with Bitcoin shooting to record highs in 2021. Tesla directly benefited<\/a>, as it locked in more than $100 million in profits from its crypto investment.<\/p>\n

Bitcoin, which is notoriously volatile, was already on the upswing before Tesla announced its moves in February of 2021. The cryptocurrency’s value quickly soared by tens of thousands of dollars. <\/p>\n

Tesla suspended its Bitcoin vehicle sales in May of 2021, citing the environmental impact from the extensive use of coal and other fossil fuels to mine the cryptocurrency. But after a mid-summer swoon, Bitcoin rose again in autumn to an all-time high of $68,990.90, according to Coindesk<\/a>.<\/p>\n