By May 2021, Tesla stopped accepting bitcoin as a payment option for its best-selling electric vehicles due to environmental concerns. File Photo by Stephen Shaver/UPI | License Photo
July 21 (MT Newswires) -- Electric vehicle maker Tesla converted 75% of its bitcoin holdings into fiat currency, according to an announcement made by the company on its recent earnings call.
Tesla said it held $218 million worth of the cryptocurrency at the end of the second quarter.
Tracking the Tesla crypto timeline, in February 2021, the company announced that it had purchased $1.5 billion worth of bitcoin, which pushed the price of the cryptocurrency to new highs. Then the company sold a small portion of the holdings to test its liquidity.
By May 2021, Tesla stopped accepting bitcoin as a payment option for its best-selling electric vehicles due to environmental concerns. In February of this year, Tesla reported that it held $1.99 billion worth of bitcoin as of the end of 2021.
However, the conversions in Q2 added $936 million of cash to Tesla's balance sheet, indicating the it has converted about 75% of its bitcoin purchases into fiat currency.
CEO Elon Musk has become a popular promoter of Dogecoin, which he considers a cryptocurrency that is more suitable for consumer transactions. Musk has said he holds several cryptocurrencies, including Ethereum, bitcoin and Dogecoin.
Earlier this year, Musk said Tesla might resume accepting bitcoin as purchase payments if the industry can confirm that it is leaning toward renewable energy. According to Q2 data from the Bitcoin Mining Council, 59.5% of the bitcoing mining industry runs on sustainable power, which is the fifth quarter in a row for which the figure has been over 50%.
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