Elon Musk said Tesla Inc. sold 10% of its Bitcoin holdings to demonstrate the token’s liquidity, while adding that he’s retained his personal investment in the cryptocurrency.
Tesla’s earnings report showed the firm, that bought more than $1 billion of the tokens earlier this year, generated $101 million in income from the sale. Musk said on Twitter that Tesla in essence was trying “to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.”
The world’s largest cryptocurrency climbed about 1% to $53,765 as of 12:16 p.m. in Tokyo on Tuesday. It’s tumbled from a peak of almost $64,870 in mid-April but is still up sevenfold in the past year.
Tesla fell as much as 3.1% in late trading after its results were announced Monday despite a record profit in the first quarter.