Tesla had to sell off a large percentage of its bitcoin holdings to meet unexpected production costs in China, Germany, and the USA.

The company sold $936 million of its bitcoin holdings in Q2 this year. However, CEO Elon Musk explained that the move was not because the company no longer believes in the asset, but because it had incurred record production costs in China as a result of the last COVID-19 lockdown.

Earlier this week, Tesla announced the selling of 75% of its bitcoin holdings during Q2, 2022.
This announcement affected the price of the primary cryptocurrency, as it was close to solidifying its position at $24K but the news release brought it down to under the $23,000 mark.

Speaking on the recent sell-off, the CEO of Tesla – Elon Musk explained that the company saw its production costs in China soar to unseen levels due to the latest COVID-19 lockdowns in the country. He made it known that selling off nearly $1 billion worth of bitcoin helped the company to meet the unpredicted costs.

Elon further explained that the company is in desperate need of fresh funds having just newly opened factories in Germany and the USA. He once tagged the facilities in Berlin and Austin, Texas, as “gigantic money furnaces.”

Although Tesla has sold a significant chunk of its crypto stash, Elon Musk remains a HODLer. He admitted to investing some of his wealth in Bitcoin, Ethereum, and Dogecoin last summer. In March 2022, he reiterated that he won’t part with his possessions.

Featured image source: watcher.guru