Bitcoin prices have fallen to their lowest levels since early February Monday after Tesla (((TSLA)- Get the report CEO Elon Musk has hinted in a Twitter exchange that his clean energy car company can sell all its holdings in digital currencies.
In a reply to a cryptocurrency blogger known as @CryptoWhale, Bitcoin enthusiasts suggested that “when we learn that Tesla has thrown away the rest, we’ll be even more angry with Tesla’s founders.” Ta #Bitcoin “Holding”, Musk replied “certainly.”
He later, “to clarify his guess,” Tesla did not sell $ 1.5 billion in Bitcoin, but nevertheless the world’s largest in a series of exchanges with various Bitcoin enthusiasts. Renewed criticism of cryptocurrencies.
Bitcoin prices traded on the CoinDesk exchange on Monday at $ 45,385.65 each, 10.1% lower than the highs at the beginning of Sunday. This shows a 31.2% drop from the record high of $ 64,829.14 on April 15.
Meanwhile, Tesla shares are marked 1.6% lower in pre-market transactions, indicating that Bell’s opening price is $ 580.10 each.
Within the Bitcoin community, Musk said last week that Tesla would not accept digital tokens as payments and add them to its $ 1.5 billion end-of-quarter holdings until developers found a way to reduce the energy consumed during mining. I complained of anger at.
Mask, which began accepting Bitcoin as a payment for Tesla cars last week in March, citing the use of coal to drive a controversial process, “for Bitcoin mining and trading. The use of fossil fuels is increasing rapidly. “
Earlier this year, Bank of America released a report detailing the heavy environmental costs of Bitcoin’s complex payment process. The CO2 emissions required to “mining” each transaction are about the same as Greece, the top 50 in the world economy. 60 tons.
Musk also polled 53 million Twitter followers and asked if Tesla should accept Dogecoin as a payment method instead, after which he “worked with developers to improve the efficiency of system transactions. “I will,” he said, and said the negotiations were “potentially promising.”
Mr. Musk said Tesla maintained its current Bitcoin holdings and boosted revenues by $ 101 million in the previous quarter, but “will use it for trading as soon as the mining industry shifts to more sustainable energy.” It was.
Tesla announced a $ 1.5 billion purchase on February 8th, when it released its annual report, and on April 26th, it had 17.1 billion “cash and cash equivalents” at the end of the quarter, including holding Bitcoin. Said it was a dollar.
Under US accounting rules, Tesla’s Bitcoin holdings must be held as so-called “intangible” assets on a company’s balance sheet. In other words, it cannot be increased like the value of “goodwill”. However, if the price of Bitcoin falls, it can be reduced, and Tesla’s stock price is at least partially related to Bitcoin fluctuations.
Bitcoin Steadies as Musk Clarifies Tweet; Tesla Holdings in Focus Source link Bitcoin Steadies as Musk Clarifies Tweet; Tesla Holdings in Focus