After Tesla Inc TSLA announced in its second-quarter report Wednesday that it had sold off 75% of its Bitcoin position, MicroStrategy Incorporated MSTR CEO Michael Saylor commented on the development via his Twitter account.
“If you sell 75% of your bitcoin, you only have 25% of your bitcoin left,” Saylor said.
The commentary refers to an industry saying: "One Bitcoin equals one Bitcoin."
The saying means that investors should be focused on accumulating Bitcoin instead of being focused on Bitcoin’s price in U.S. dollars, as mass adoption could bring people to measure prices in Bitcoin rather than fiat.
The phrase also comes in response to volatile market conditions in order to focus on the asset itself as opposed to the price of the asset.
Tesla sold 75% of its Bitcoin position and added $963 million in cash to its balance sheet from the sale. The company purchased this Bitcoin for just over $1.1 billion last year, marking a loss of over $100 million. Tesla still holds around $300 million worth of Bitcoin on its balance sheet.
Why It Matters: Saylor may be Bitcoin’s largest bull. With well over 100,000 Bitcoin under management, Saylor is responsible for a large portion of the cryptocurrency's adoption over the last few years.
With Tesla selling off the majority of its Bitcoin position, institutional investors may follow suit. After Tesla’s purchase of Bitcoin in 2021, many other public companies added it to their balance sheets.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Visit Benzinga's Crypto Homepage - 1,000,000+ depend on Benzinga Crypto every month