Crypto: here’s why Elon Musk no longer buys Bitcoin

News hardware Crypto: here’s why Elon Musk no longer buys Bitcoin

Accustomed to bluster on Twitter following his exploits in cryptocurrencies such as bitcoin, Dogecoin or even Ethereum, the CEO of SpaceX has remained discreet these days on the subject. Today a Bitcoin is at €19,000, yet Elon Musk doesn’t seem to be seizing the opportunity, here’s why.

Elon Musk’s Bitcoin holdings at Tesla

If Elon Musk surely has personal funds in Bitcoin, it is through his companies that the American billionaire ensures his crypto purchases.

Through several purchases spread over the past few years, in February 2021, his company Tesla became one of the largest Bitcoin holders in the world, with a capital valued at $1.5 billion in Bitcoin and other cryptos.

However, Elon Musk didn’t “HODL” that long…

Last July, Tesla announced that it had disposed of 75% of its Bitcoin holdings in its balance sheet for the second quarter of 2022. With this sale estimated at $1 billion, the company did not incur any losses. on the contrary, it recorded a profit of $64 million – while the value of Bitcoin was falling. This indicator suggests that Elon Musk had started buying long before BTC was at €60,000.

This case had allowed Tesla to obtain liquidity at a critical time following the blockage of supply chains in China with the health crisis. It is important to remember that the company was not the only one to suffer given the stock prices of the largest companies in multiple sectors. Thus, Bitcoin had been a real boost for Elon Musk.

Elon Musk is not changing his Bitcoin investment strategy

Despite this impressive sale, Tesla kept the rest of its Bitcoins. In the Q3 activity report published recently, we learn that Elon Musk’s company still has $218 million in BTC.

Thus, with Tesla, Elon Musk is the owner of approximately 9,720 Bitcoins – an element which testifies to the conviction of the American billionaire towards virtual currency and blockchain technologies.

With so much Bitcoin, the CEO is still largely on the whales of the ecosystem, so going back to buying doesn’t necessarily seem to be necessary.

Furthermore, despite the fall in the price of cryptos, Elon Musk is more focused on integrating these cryptocurrencies within these companies. In March 2021, Tesla accepted payment for its vehicles in Bitcoin and very quickly backtracked for ecological reasons.

However, Elon Musk reiterated some time later in a more cautious manner. Since January 2022, Tesla merchandise stores have been accepting payment in DOGE, Elon’s favorite crypto. Last May, his company SpaceX also took the plunge by offering the same type of service.

In this sense, Elon Musk seems more focused on using Bitcoin and other cryptos, rather than investing. Nevertheless, if the billionaire does come to redeem Bitcoin and communicate it publicly, it is highly likely that the cryptocurrency will begin a bull run – as it was able to do previously following Elon Musk’s enthusiastic interactions on twitter.

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