Elon Musk Denies That Tesla Has Sold Any Bitcoin After Investors Lash Out
Tesla Inc's chief executive officer Mr. Elon Musk clarified on Twitter that his company has not sold any Bitcoins during the current quarter. Musk's statement came after Bitcoin lost billions in market value after a single-word tweet by him that hinted that perhaps his company had sold the remaining of its Bitcoin holdings. Tesla currently has $1.2 billion of Bitcoin in its portfolio, after it bought $1.5 billion last year and offloaded some of it during the first quarter of this year. The executive's latest Tweet immediately caused the value of Bitcoin to recoup some of its losses, with the cryptocurrency now trading at $44,086 at 11:21 EDT.
Musk's Reversal Causes Bitcoin To Regain Half Of Its Lost Value
The original Tweet came in response to a post by Twitter account Mr. Whale speculating that bitcoin owners would be disappointed after they discover that Tesla has unloaded the rest of its Bitcoin portfolio.
This Tweet stated that:
Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings.
With the amount of hate @elonmusk is getting, I wouldn’t blame him…
Musk's one-word reply to this which stated "Indeed" caused Bitcoin to spiral downward even further as the Tweet came after an earlier reveal by the executive that his car company will suspend accepting the cryptocurrency as payment.
Roughly eleven hours later after Tweeting "Indeed", Musk clarified that Tesla has not sold any Bitcoins during the current quarter.
He outlined in simple words that:
To clarify speculation, Tesla has not sold any Bitcoin
However, by then, Bitcoin had lost roughly $4,000 in its price, but within a couple of minutes after the clarification, it gained roughly half of this.
The latest round of Tweets from the Tesla chief saw a strong backlash as users on the social media platform accused him of helping duplicitous entities. However, unlike his previous Tweets, most of which focus on another cryptocurrency, Dogecoin, these also spurred cryptocurrencies of their own.
One of these, dubbed STOPELON coin, has surpassed a market capitalization of $2 million within a day of being created in response to Musk's Tweet. The other is more aggressively titled and cannot be named here. When compared to STOPELON, this currency has a market capitalization of $68 million as it cashes in on the negative sentiment surrounding the executive's latest remarks.
With the latest Tweet from Musk putting the matter to rest, all eyes will nevertheless still be on Tesla's upcoming earnings for the second quarter of this year. At the end of its first quarter, Tesla had roughly $1.3 billion in Bitcoins, as it sold some and generated a gain that helped it pamper net income or profit.
With Musk's tweets influencing the cryptocurrency's price, his company will have to toe a fine line if it's to avoid regulatory scrutiny. Certain transactions, such as buying more Bitcoin or selling some after Musk's tweets influence its price could be deemed by the Securities and Exchange Commission (SEC) as him violating fiduciary duties or unfairly manipulating the market.
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