Tesla has sold 75% of Bitcoin; Musk faces Twitter acquisition lawsuit

Twitter has sued Elon Musk for going back on his takeover offer. Meanwhile, Tesla has sold a large amount of Bitcoin.

Tesla CEO Elon Musk has once again become relevant to the cryptocurrency sector in several new developments that could affect the industry.

Musk is at loggerheads with Twitter over a deal that could affect the social media platform’s crypto policy. In addition, Tesla has sold a lot of Bitcoin. On a more positive note, Musk has said he continues to support Dogecoin.

Tesla revealed in its latest earnings statement that it has sold approximately three-quarters of its Bitcoin holdings and cashed out those holdings for fiat currency.

“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases to fiat currency,” the company wrote. Tesla’s report also said that conversions to cash during Q2 added $936 million to its balance sheet.

Tesla initially purchased $1.5 billion worth of Bitcoin in early 2021 and began accepting Bitcoin payments around that time. Shortly after, it stopped accepting Bitcoin payments due to concerns over the energy consumption of Bitcoin mining.

However, the company’s recent Bitcoin sale was motivated by other concerns. Elon Musk said during the earnings call that Tesla sold Bitcoin because it was uncertain when the COVID-19 lockdowns in China would be lifted.

Musk added that China’s shutdowns made it “important for [Tesla] to maximize [its] cash position.” He said the sale “should not be taken as a judgment on bitcoin” and added that Tesla could invest in Bitcoin again in the future.

Since June, Bitcoin prices have periodically fallen below $20,000—a low not seen since December 2020. It is unlikely that the ongoing bear market affected Tesla’s sales, as the trend began after the period when Tesla sold its Bitcoin.

In other news, Musk has canceled his long-held plans to buy Twitter. Musk claims that the social media company has not provided him with sufficient information about the proportion of users who are “spam bots” or fake accounts.

Musk’s decision to go back on his offer has prompted Twitter to file a lawsuit that could force him to pay a fine or even follow through on the deal.

Twitter has secured an October court date despite Musk’s efforts to push for a February trial. An expedited trial was granted because of the deal’s time-sensitive nature: Musk’s debt financing will eventually expire, while a “drop dead” clause could allow either side to walk away from the deal after a certain date.

Although Musk’s expected acquisition of Twitter was not directly related to his Bitcoin and cryptocurrency investments, several of the changes Musk planned to make to the social media platform were related to cryptocurrency.

These plans included the introduction of crypto payments and the elimination of cryptocurrency fraud. In addition, the major crypto exchange Binance became involved in the deal, promising to commit $500 million if Musk’s offer is successful.

If Musk is forced to continue with the deal after the lawsuit ends, it’s likely that his vision for the platform will remain the same.

While Musk appears to be withdrawing interest in Bitcoin and Twitter, he appears to maintain interest in the popular “meme coin” Dogecoin.

At the end of June, Musk attended the Qatar Economic Forum in Doha. There he said that he does not specifically recommend people to invest in crypto. However, he said he is promoting Dogecoin because “a lot of people who are not that wealthy … have encouraged [him] to buy and support [it].”

Musk also confirmed that SpaceX will soon accept Dogecoin as payment for goods. That plan follows a similar decision Musk made on behalf of Tesla when the firm began accepting Dogecoin payments in February.

Furthermore, in Tesla’s latest earnings call, Musk confirmed that Tesla continues to hold DOGE that it has earned from sales or obtained through other means. “We have not sold any of our Dogecoin; we still have it, he said.

Musk has quickly become one of Dogecoin’s most high-profile advocates. Recently, Musk has appeared on Saturday Night Live to promote Dogecoin and has promised to let SpaceX “put a ‘literal Dogecoin on the literal moon.’ He has even contributed to Dogecoin by advising the project’s development team.

Although Dogecoin is often considered a less-than-serious “meme coin,” the cryptocurrency is now nearly a decade old. It has found lasting success and has proven that it can survive multiple market crashes and recoveries.

As such, Musk can safely use Dogecoin as the face of his blockchain work, even if his efforts around Bitcoin and Twitter are lagging.