MUSK: TESLA SOLD BITCOIN TO PROVE LIQUIDITY AS CASH ALTERNATIVE

PALO ALTO: 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—which 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.”

Bitcoin was up 2.3% to $54,503 as of 10:18 am in London on Tuesday. It’s tumbled from a peak of almost $64,870 in midapril but is still up sevenfold in the past year.

Tesla put cryptocurrencies onto the agenda of corporate treasurers worldwide with its investment in Bitcoin. While many continue to view the token as just too risky to be compared with cash, Tesla’s CFO Zachary Kirkhorn said on an earnings call that the company believes in Bitcoin’s long-term value.

Musk has been a high-profile supporter of cryptocurrencies for some time and late last month announced that Tesla would begin accepting payment for its vehicles in Bitcoin.