Tesla converted 75% of Bitcoin purchases to fiat currency in the second quarter of 2022.

Tesla, led by Elon Musk, confirmed that it purchased about $1.5 billion in bitcoin in January and expects to start accepting it as payment in the future.

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At the beginning of last year, Tesla invested $1.5 billion in bitcoinbetting that the electric vehicle manufacturer called “long-term potential” of the digital currency. The company has already sold three-quarters of its assets.

“As of the end Q2we have converted approximately 75% of our bitcoin purchases into fiat currency,” Tesla said in the second quarter. report about incomes and material losses on Wednesday. The company said these sales added $936 million in cash to its balance sheet.

It’s a quick retreat for Tesla and the CEO Elon Muskwho actively supported the cryptocurrency during last year’s takeoff, often tweet about various digital currencies. bitcoin price has lost half its value over the past four months during the so-called “crypto winter”.

For Tesla, the fair market value of its bitcoin holdings reached $2.48 billion in first quarter of 2021 and ended the year at around $2 billion. The company didn’t say at what price it sold or provide the amount of its impairment, but bitcoin started the second quarter around $46,000 and ended below $19,000.

Analyst Brian Johnson at Barclays rated Tesla will see $460 million worth of Bitcoin-related impairment earlier this week due to the sell-off.

“The reason we sold some of our bitcoin holdings was because we didn’t know when Covid restrictions would ease in China, so it was important for us to maximize our cash position,” Musk said in an earnings call at Wednesday. “This should not be taken as a verdict on bitcoin,” he said, adding that Tesla is open to increasing its crypto holdings going forward.

However, when asked about bitcoin’s potential as an inflationary hedge of earnings, Musk said that Tesla’s main goal is to accelerate the transition to sustainable energy, and called bitcoin “sideshow to sideshow.”

In the first quarter of 2021, when Tesla went big on bitcoin, the company said the decision was about becoming more flexible, diversifying, and generating income from its cash holdings. The company quickly sold 10% as the currency went up, contribution $ 101 million. profit for the period.

Kirkhorn said at the time that the company’s intention was “to hold on to what we have for the long term and continue to accumulate bitcoin through our customers’ transactions when they buy cars.”

Last May, Musk said that Tesla stop accepting bitcoin to buy cars due to the environmental impact of mining, but added that the company “won’t sell bitcoin.” A week later, he tweeted emoji indicating that the company has “diamond hands” when it comes to investing in bitcoin, and he tagged “our master of the coin.”

A lot can change in a year.

— Laura Kolodny of CNBC contributed to this report.

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