The electric vehicle manufacturer disclosed that it had sold $75% of its Bitcoin holdings, which were worth $936 million at the time in its Q2 report.
Tesla made its initial purchase of $1.5 worth of the digital asset when bitcoin was trading between $32,000 and $33,000 in January 2021. Later in the first quarter, Tesla sold around 10% of its holdings, and up to the most recent disclosure, it had not purchased or sold any additional bitcoin.
The company sold 75% of its Bitcoin, converting it into fiat money due to losses incurred since their initial purchase and added $963 million in cash to its balance sheet. This means that they sold at an average price of about $29,000 per bitcoin.
“Though we faced certain challenges, including limited production and shutdowns in Shanghai for the majority of the quarter, we achieved an operating margin among the highest in the industry of 14.6%, positive free cash flow of $621M and ended the quarter with the highest vehicle production month in our history,” the company revealed in a statement.
The most valuable automaker’s revenue in Q2 declined significantly from $18.76 billion in Q1 2022, but increased year over year from $11.95 billion. However, the quarter marked the end of Tesla’s run of generating record earnings.
Following the news, the price of bitcoin dropped by around 1.7 percent to $23,300. Tesla’s stock was trading up 0.6% to $741.03 Wednesday. Shares are down almost 30% year to date.