On not very shocking news, Tesla dumps majority of bitcoin

[bbc.reporter]

This is what I have speculated and argued. Companies holding a speculative asset in their balance sheet will be forced to sell if the asset is not bringing profit for their monthly income statement. I reckon if bitcoin continues to dump, I speculate that Michael Saylor will be forced to deleverage. Let us wish this will not become true.



Tesla (TSLA) reported its Q2 earnings after the closing bell on Tuesday, meeting analysts’ estimates, following a prolonged COVID-induced shutdown at its Shanghai production facility.

The company also says it sold 75% of its Bitcoin, turning it into fiat currency, adding $936 million in cash to its balance sheet. The quarter, however, ended Tesla's streak of reporting record revenue.

Source https://finance.yahoo.com/news/tesla-q2-earnings-2022-201008978.html

[bakasabo]

Can this be the reason, why after several days of green market, this morning we see it is being red ? Probably yes and no. We all remember how market reacted several years ago when crypto community saw words Elon Mask, Bitcoin and Tesla been together in one sentence. We see same words today, but with a negative context, but leading currencies have lost only 3-6% of their yesterdays value. Either there will be more consequences, or few people care about Tesla and Bitcoin nowadays.

[P2PECS]

Companies holding a speculative asset in their balance sheet will be forced to sell if the asset is not bringing profit for their monthly income statement.

That is what BTC is for Elon Musk, a speculative asset like any other, such as Doge or shares of another company. There is nothing special about it for him.

I reckon if bitcoin continues to dump, I speculate that Michael Saylor will be forced to deleverage. Let us wish this will not become true.

In this case I think it is different and Michael Saylor sees BTC in a different way than Elon Musk, and he has also tied his future to BTC. With most of the voting power in MSTR, the price would have to drop a lot before it would be forced to liquidate anything. I don't know if perhaps an attack of short positions could force him.

Saylor liquidating part of his BTC holdings would make him look like a big mouth much more than he is looking lately.

[Charles-Tim]

There was thread I saw that people are discussing what is similar to this.

Surprisingly, Elon's Tesla is not so keen on hodling BTC anymore

This is what I have speculated and argued. Companies holding a speculative asset in their balance sheet will be forced to sell if the asset is not bringing profit for their monthly income statement. I reckon if bitcoin continues to dump, I speculate that Michael Saylor will be forced to deleverage. Let us wish this will not become true.

There is nothing that can not happen, but we all know that Michael Saylor is different from Elon Musk. Elon Musk and Tesla have been clowning about what is related to bitcoin.

On not very shocking news, Tesla dumps majority of bitcoin

People should know Elon Musk than that, this is not a shocking news but what some people have been expecting.

The company also says it sold 75% of its Bitcoin, turning it into fiat currency, adding $936 million in cash to its balance sheet. The quarter, however, ended Tesla's streak of reporting record revenue.

Very healthy for bitcoin if big whales sell for individuals to buy.

Can this be the reason, why after several days of green market, this morning we see it is being red ? Probably yes and no.

It could be, but bitcoin price has been rising since last weekend, that has been 5 days ago. The bear market is not yet over. The decline has also not been significant.

[Wind_FURY]

Did Elon Musk sell the Pico Bottom? As illustrated by him, not all geniuses make the right decisions in their lives. But from the pleb's viewpoint, we shouldn't worry. Bitcoin doesn't need Elon Musk, or anyone who doesn't take the time to actually learn and understand Bitcoin.

Plus be prepared, because Elon Musk might join Nassim Taleb and FUD Bitcoin like all of those BSV-Flat-Earthers, OR he might join Vitalik and his new shitcoin after Ethereum completes the move to POS.

[davis196]

I remember Elon Musk complaining about Tesla factories losing money and having difficulties with the production schedule.
Maybe that's why Tesla sold most of it's BTC reserves. Anyway, this isn't such a big deal and we as Bitcoin maximalists shouldn't act butthurt.
Tesla has the right to sell their BTC reserves anytime they want.

That is what BTC is for Elon Musk, a speculative asset like any other, such as Doge or shares of another company. There is nothing special about it for him.

Well, Bitcoin is "a speculative asset" for 80-90% of all the Bitcoiners. There's nothing wrong with viewing a financial asset as "speculative".
Speculation is having a high risk/reward attitude in trading. It's simply buying low and selling high for profit.
I don't know why the term "speculation" still has negative connotation attached to it.
Elon Musk never expressed any positive opinions about Bitcoin, he mostly neutral about BTC, so we shouldn't think that he was a hardcore Bitcoin believer.

[Wind_FURY]

I remember Elon Musk complaining about Tesla factories losing money and having difficulties with the production schedule.

Maybe that's why Tesla sold most of it's BTC reserves. Anyway, this isn't such a big deal and we as Bitcoin maximalists shouldn't act butthurt.

Tesla has the right to sell their BTC reserves anytime they want.

OR pay for Elon Musk's "break-up fee" for backing out of his $44,000,000,000 deal with Twitter. What Twitter and Jack Dorsey can do is use that $1,000,000,000 from the break-up fee to buy Bitcoin for their own treasury.

Who's butthurt? The Honey Badger don't care. Is that all Tesla sold? It didn't crash the price. We'll see Tesla again when Bitcoin is trading with six digits.

[dragonvslinux]

The irony here is that Tesla could have already bought back twice as much Bitcoin this quarter (which wouldn't be reporting until Q3). For example if they sold around $40K they could have well bought back at $20K, or around the 200 WMA if they felt that it presented a good average buying price. So while they did indeed sell, it remains unknown if they hold more than Q2 tax filings, given how cheap July prices have been.

I wouldn't be surprised to hear that out of the 75% they sold (likely good profit), they have returned half of that back into the market at a lower price and currently hold twice what they have for example.

[m2017]

The irony here is that Tesla could have already bought back twice as much Bitcoin this quarter (which wouldn't be reporting until Q3). For example if they sold around $40K they could have well bought back at $20K, or around the 200 WMA if they felt that it presented a good average buying price. So while they did indeed sell, it remains unknown if they hold more than Q2 tax filings, given how cheap July prices have been.

I wouldn't be surprised to hear that out of the 75% they sold (likely good profit), they have returned half of that back into the market at a lower price and currently hold twice what they have for example.

Let's wait for the Q3 and find out if tesla was buying in the current time period. Can they sell in the Q2 at a loss, for some tax break or something like that?

Then why is this information about 75% tesla's bitcoin sold so actively promoted in the media? Even this forum could not get around this news, because more than one topic has already been created with a discussion of this topic. Another attempt to create panic, drop bitcoin price and buy cheap?

[dragonvslinux]

The irony here is that Tesla could have already bought back twice as much Bitcoin this quarter (which wouldn't be reporting until Q3). For example if they sold around $40K they could have well bought back at $20K, or around the 200 WMA if they felt that it presented a good average buying price. So while they did indeed sell, it remains unknown if they hold more than Q2 tax filings, given how cheap July prices have been.

I wouldn't be surprised to hear that out of the 75% they sold (likely good profit), they have returned half of that back into the market at a lower price and currently hold twice what they have for example.

Let's wait for the Q3 and find out if tesla was buying in the current time period. Can they sell in the Q2 at a loss, for some tax break or something like that?

Unlikely it was for a tax break, as someone else pointed out (in one of the many other threads regarding this topic) they bought in Q4 2020, not in Q1 2021 as many assumed (included myself):

elon bought his stash in-before december 2020. he reported it on the december 2020 tax filings..
.. those tax filings entered the media circus of speculation viral commenting about it in feb-march 2021

So they bought around $20K or less, and sold somewhere between $17.5K and $47K, based on Q2 price range.

So really, Tesla bought at the beginning of the bull market and sold at some point when price turned bearish - no doubt for a profit if they had any sense (or risk management) - it's unlikely they would of sold for a loss. It seems like they saw the opportunity for quick profit, and despite liking the idea of having a % in a reverse asset like Bitcoin, prefer to do so when the market is trending upwards as opposed to downwards.

I otherwise think its unlikely that they were buying this month, even if totally possible. More likely they would wait for a trend reversal or some form of stability rather than risking buying an asset which is (by many metrics) in a downtrend. More likely they buy next year around $30K to $40K imo, even if it'd be higher than current prices, probably still less than where they sold at.

Ultimately if they sold for profit / to reduce risk, it's unlikely they'd be exposing themselves to Bitcoin right now given the current risk of further downside. It wouldn't be very logical if your strategy is low risk.

[palle11]

This will not be new for the public who have followed Elon musk on his fud for bitcoin. He has expressed choice for dogecoin and selling a huge percentage of bitcoin hodling of Tesla isn't that strange but maybe the reality as it has happened is the surprising aspect. Maybe this may drop the bull that has been on for few days ago and bearly 24 hours of the news the price of bitcoin started to drop.

[darkangel11]

Sold at a loss despite Musk saying that they wouldn't sell at all. Pretty pathetic if you ask me.
On the other hand it's a good lesson to those who follow rich people. When Jamie Dimon was saying that he'd never buy bitcoin he was actually buying. When Elon said he bought, he was getting ready to sell. When Tesla accepted bitcoin it was just weeks before they stopped accepting it. It was a pump and dump scheme nothing else. 

There were many people who in 2021 said that bitcoin would go to 100k or higher and are now bearish and telling people not to buy because it could go to 10k. These are the people we don't want in the space but since we cannot kick them out it's up to you guys to filter the news and know who to trust.

[cryptomaniac_xxx]

I remember Elon Musk complaining about Tesla factories losing money and having difficulties with the production schedule.

Maybe that's why Tesla sold most of it's BTC reserves. Anyway, this isn't such a big deal and we as Bitcoin maximalists shouldn't act butthurt.

Tesla has the right to sell their BTC reserves anytime they want.

OR pay for Elon Musk's "break-up fee" for backing out of his $44,000,000,000 deal with Twitter. What Twitter and Jack Dorsey can do is use that $1,000,000,000 from the break-up fee to buy Bitcoin for their own treasury.

Who's butthurt? The Honey Badger don't care. Is that all Tesla sold? It didn't crash the price. We'll see Tesla again when Bitcoin is trading with six digits.

Not sure if Elon will go back when the price is at 6 digits, but for sure he will be back. Maybe he will announce it grandiose style or will simply be under the radar but they can't hide it as they have to declare it in papers.

Anyhow, I'm also not surprised, he needed money with the Twitter buy out debacle and Tesla itself is loing money in this recession. So refilling his treasury with bitcoin money is a good thing.

[bbc.reporter]

OR he might join Vitalik and his new shitcoin after Ethereum completes the move to POS.

I am quite certain that you are joking, however, this might be closer to being real than being your joke. There was an article before that mentioned Elon Musk's legal advisor being one of the advisors of the new Dogecoin Foundation. It also mentioned Vitalik as also an advisor. I speculate that they might be in discussion with each other about developments in the cryptospace.

https://foundation.dogecoin.com/about/

[Wind_FURY]

I remember Elon Musk complaining about Tesla factories losing money and having difficulties with the production schedule.

Maybe that's why Tesla sold most of it's BTC reserves. Anyway, this isn't such a big deal and we as Bitcoin maximalists shouldn't act butthurt.

Tesla has the right to sell their BTC reserves anytime they want.

OR pay for Elon Musk's "break-up fee" for backing out of his $44,000,000,000 deal with Twitter. What Twitter and Jack Dorsey can do is use that $1,000,000,000 from the break-up fee to buy Bitcoin for their own treasury.

Who's butthurt? The Honey Badger don't care. Is that all Tesla sold? It didn't crash the price. We'll see Tesla again when Bitcoin is trading with six digits.

Not sure if Elon will go back when the price is at 6 digits, but for sure he will be back. Maybe he will announce it grandiose style or will simply be under the radar but they can't hide it as they have to declare it in papers.

Anyhow, I'm also not surprised, he needed money with the Twitter buy out debacle and Tesla itself is loing money in this recession. So refilling his treasury with bitcoin money is a good thing.

He, and many CEOs, merely have little, or absolutely NO UNDERSTANDING of what Bitcoin truly is, or its potential. Compare Elon Musk to Michael Saylor, Michael Saylor learned the HARD WAY that he needs the utility that Bitcoin provides. I believe he was in Argentina when a bank didn't allow him to move millions of his own money out of the country.

Plus once many more people truly understands that one of Bitcoin's underlying nature also political that weakens strongholds and bounderies, I believe developing/emerging nation-states will also start, or should start, HODLing Bitcoin in their treasuries.

[justdimin]

OR he might join Vitalik and his new shitcoin after Ethereum completes the move to POS.

I am quite certain that you are joking, however, this might be closer to being real than being your joke. There was an article before that mentioned Elon Musk's legal advisor being one of the advisors of the new Dogecoin Foundation. It also mentioned Vitalik as also an advisor. I speculate that they might be in discussion with each other about developments in the cryptospace.

https://foundation.dogecoin.com/about/

Vitalik and elon was involved before in shiba inu so I wouldn't be surprised with this one if this came to reality. Another fact which can make the partnership happen is that elon musk dislikes btc's pow but he would now embrace eth when it moves to pos.

Sold at a loss despite Musk saying that they wouldn't sell at all. Pretty pathetic if you ask me.
On the other hand it's a good lesson to those who follow rich people.

Will you really believe what this guy is saying? This guy has a habit or has a history of changing his decisions very quickly. There's even one moment where he announced he will be accepting btc on his tesla company and then unaccepted it again after some days but I think his biggest issue is about those meme coins. Many people lost their money because of it, that's why many of them don't believe anymore on what this guy is saying.

[Rufsilf]

This will not be new for the public who have followed Elon musk on his fud for bitcoin. He has expressed choice for dogecoin and selling a huge percentage of bitcoin hodling of Tesla isn't that strange but maybe the reality as it has happened is the surprising aspect. Maybe this may drop the bull that has been on for few days ago and bearly 24 hours of the news the price of bitcoin started to drop.

You can't underestimate Elon Musk and because of his huge number of followers that was pretty easy for him to manipulate the market by just spreading fake news. Social Media is now a medium for his influence not only in crypto but also in other forms of investment.

If the news is really true, I've doubted if Elon Musk is really serious about investing in Bitcoin. Dumping their Bitcoin when you are buying at a higher price is not a preferable decision of a real businessman, he and Tesla Company instead hold it.

[Smartvirus]

This is what I have speculated and argued. Companies holding a speculative asset in their balance sheet will be forced to sell if the asset is not bringing profit for their monthly income statement. I reckon if bitcoin continues to dump, I speculate that Michael Saylor will be forced to deleverage. Let us wish this will not become true.

In the end, one man's lose or companies lose is another individual's or companies gain.
It's just the way it is. Even with there persistent dump, bitcoin continues to rise. Right now, its about $23k, still far from a fully formed bullish trend but, its set the pace for some recovery.

The good news is, no one takes Elon Musk seriously anymore. He tried to pump Doge and managed to push it up a few pips but still, it's down and struggling like other shitcoins. Musk has lost his grip on cryptocurrency and that's good for the syetm. With him have dumped bitcoin, he would be truly a hypocrite to buy but the truth is, nobody can stop him from buying and nobody really cares too.

[mk4]

Vitalik and elon was involved before in shiba inu so I wouldn't be surprised with this one if this came to reality. Another fact which can make the partnership happen is that elon musk dislikes btc's pow but he would now embrace eth when it moves to pos.

How are both of them involved in Shiba Inu? The only notable thing with SHIB in this case was that the team sent Vitalik a significant chunk of the supply, in which then Vitalik sold the tokens and donated the money.

[LFC_Bitcoin]

We need to stop caring what Elon Musk does. It doesn’t seem to have affected the market much, since he revealed they’d sold any way.

It’s not important what he does. There are no heroes in bitcoin, this is why decentralisation rules. Morons like Musk have very little effect. He’s not cut out for decentralisation. He’s a confirmed narcissist, those type of people like to be in control. Tough luck for him, he’ll never have any control over bitcoin.