Elon Musk’s Tesla Still Has $222M of Digital Assets After Selling $936M in Bitcoin

After shocking markets by selling 75% of its Bitcoin, Elon Musk’s Tesla revealed today it still has $222M digital assets on its balance sheet.

The new details were in the company’s quarterly report filed with the U.S. Securities and Exchange Commission Monday morning.

It’s usually the case that a company will put out a press release and host an earnings call a few days before submitting its full earnings report with the SEC. That’s why the news about Tesla selling 75%, or $936 million, worth of Bitcoin on Wednesday was out before the company had released more details.

Tesla CEO Elon Musk went on to say during the company’s earning call on Wednesday that the company sold its Bitcoin to free up cash as COVID lockdowns continue in China.

“The reason we sold a bunch of our Bitcoin holdings was that we were uncertain when the COVID lockdowns in China would alleviate,” Musk said on last week’s call. “So it was important for us to maximize our cash position, given the uncertainty of COVID lockdowns in China.”

Bitcoin share price fell 2.5% within an hour of the announcement, dropping to $23,078.18 on Wednesday. The world’s biggest cryptocurrency by market capitalization slid further Monday afternoon, trading at $21,969.29 per BTC, according to CoinMarketCap.

Meanwhile, Tesla’s shareholders seem to like the news that the company has sold off most of its bitcoin. TSLA shares rose 9% from $742.50 at Wednesday’s close, ahead of the announcement, to $812.16 as of Monday afternoon. That’s the highest TSLA share price since early May, according to Yahoo Finance.

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