The electric vehicle maker Tesla has sold 10% of its previously acquired Bitcoin stake. This was reported in their recent Q1 results which were published yesterday. The reason Tesla sold a part of their Crytpo position, is explained by Elon Musk in the tweet below:
As you can see, Elon says it was purely to prove the liquidity of an asset like Bitcoin. When Tesla put Bitcoin officially on their balance sheet last quarter, their goal was to convince other companies to do the same thing. The recent action taken by Musk, is to prove his point. Companies should exchange dollars to Bitcoins as a inflation hedge, and to spread out their currency related risks. Especially now, with the coming inflationary environment, there is a case to be made for putting a small percentage of the company’s cash reserves into BTC.
If other companies will follow Tesla’s lead will soon be more clear. Other tech giants like Apple and Microsoft are reporting earnings later this week. One company that we do know of buying Bitcoin, is Microstrategy. They have a significant portion of their cash reserve in BTC and have increased their stock price substantially in the pas few months. Stay tuned for more news regarding Tesla and BTC.