The world’s richest man Elon Musk and his company ‘Tesla Automotives’ has just announced in his conference call yesterday that they have sold 75% of their digital assets, which included Bitcoin.
According to the CEO, they have sold all of their Bitcoin but still kept his infamous favorite coin ‘Dogecoin’.
Bitcoin swiftly dropped below $23,000, but at this time of writing, BTC is slowly climbing up.
Musk was one of the reasons why Bitcoin pumped hard during the last bull run as investors were under the impression that if Tesla, one of the most prominent companies in the world added Bitcoin to their balance sheets, other major companies would follow suit.
This has caught the attention of many investors, including Binance CEO Changpeng ‘CZ’ Zhao, but as the majority were panicking, CZ downplayed the significance of the event, claiming that the holdings of Tesla were “A drop in the ocean”.
Why Did They Sell?
According to the earnings report, if Tesla did not sell their digital assets, it will not have a positive cash flow for Q2, which could be bad for investors given the looming recession.
If, during the earnings call, they saw that the company had negative cash flow for Q2, this would surely make the company dump their stock prices as investors will look for other companies that have a better cash flow than the automotive company.