Electric vehicle maker Tesla sold most of its Bitcoin (BTC) holdings during the second quarter, according to new financial disclosures released Wednesday.
“At the end of the second quarter, we converted approximately 75% of our Bitcoin purchases to fiat,” Tesla. said in its quarterly report. “Second quarter conversions added $936 million of cash to our balance sheet.”
According to financial statements, Tesla’s net Bitcoin holdings were relatively stable for three consecutive quarters. As of the end of March, Tesla had $1.261 billion worth of digital assets on its books. After the liquidation, the firm now has $218 million in exposure to digital assets.
As Cointelegraph reported, the electric vehicle maker sold a portion of its BTC reserves in March 2021, netting a net profit of $128 million. At the time, CEO Elon Musk explained that the sale, which represented 10% of Tesla’s holdings, was to “test the liquidity of Bitcoin as an alternative to keeping cash on the balance sheet.”
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Just two months earlier, in January, Tesla became one of the largest corporate holders of Bitcoin after acquiring $1.5 billion in BTC. The purchase was disclosed in a February filing with the U.S. Securities and Exchange Commission. At the time, Tesla also had plans to accept BTC payments, but those plans were later scrapped due to concerns about Bitcoin’s energy use.
For its fiscal second quarter, Tesla reported adjusted earnings per share of $2.27 on revenue of $16.93 billion. Automotive gross margins narrowed compared with the first quarter and a year ago due to inflation and increased competition for electric vehicle components such as batteries.
