Tesla dumping 75% of its bitcoin doesn’t mean ‘a lot’, says world’s richest crypto billionaire — here’s why

The CEO of Binance is considering after news broke that electric car maker Tesla has emptied the majority of its Bitcoin (BTC) holdings.

In a new interview with Fox Business, Binance Chairman Changpeng Zhao Tells Host Neil Cavuto People shouldn’t read too deeply into Tesla CEO and crypto advocate Elon Musk who cashes in on Bitcoin heavily.

“He’s a smart guy but that doesn’t mean he owns all the valuable assets in the world. He probably doesn’t own many stocks of other companies, many other valuable cryptocurrencies, etc.

Just because he buys and sells some Bitcoin doesn’t mean that he buys Bitcoin it got better, or because he sold Bitcoin it gets worse. “

No matter what any big investor does, Bitcoin continues to prove itself both structurally and in terms of user popularity, says the CEO of Binance, whose list of crypto-wealthy Forbes ranks first.

“The fundamentals are there, the use cases are there, the user numbers are there, the community is there. The basic characteristics of Bitcoin haven’t changed because one person has bought or sold.

Nobody knows what are the reasons to sell it or buy it. Maybe I need the cash for Tesla or try to buy Twitter or something else, I don’t know. But that doesn’t mean much.”

Earlier this week, Tesla revealed that it sold 75% of its BTC holdings for $936 million in cash during the second quarter of 2022.

Musk explained the rationale behind the move on the company’s earnings call by saying:

“It is worth noting that the reason we sold off a lot of our Bitcoin holdings was that we were not sure when the Covid-19 lockdowns in China would ease.

So it was important for us to maximize our cash position, given the uncertainty of the Covid-19 lockdowns in China.

We are certainly open to increasing our Bitcoin holdings in the future, so this should not be taken as a judgment on Bitcoin.”

As of June 30, the total value of the remaining Bitcoin Tesla was $218 million.

Bitcoin is currently down 1.45% in the past 24 hours, trading at $22,731.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investments in bitcoin, cryptocurrency or digital assets. Please be aware that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

Featured Image: Shutterstock/issaro prakalung/David Sandron

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