Criticism Floods Tesla's Bitcoin Sale... Musk Says "I Did Not Sell"

"Bitcoin Sale Actually Acknowledges Cryptocurrency Value"

Elon Musk, CEO of Tesla [Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Tesla, the electric vehicle company led by Elon Musk, announced that it sold a portion of the Bitcoin it holds, sparking criticism.

On the 26th (local time), during Tesla's earnings announcement, Jack Kirkhorn, Tesla's Chief Financial Officer (CFO), stated, "We sold about 10% of the $1.5 billion worth of Bitcoin we purchased for $227 million, earning a profit of $110 million (122 billion KRW)." He added, "We did not buy Bitcoin for immediate profit, but sold some due to necessity."

Previously, Musk had promoted the excellence of Bitcoin and encouraged people to purchase it. In January, Musk added the word "Bitcoin" to his Twitter profile, which investors interpreted as a signal to buy Bitcoin, leading to a surge in Bitcoin purchases. In February, reports emerged that Tesla had purchased $1.5 billion (approximately 1.7 trillion KRW) worth of Bitcoin. Since Musk's "Bitcoin promotion" in January, Bitcoin's price surged about 111% up to this month's peak.

However, it was revealed that Tesla sold some Bitcoin during the first quarter while promoting Bitcoin purchases, leading to criticism of Musk.

Tweet exchange between Dave Portnoy and Elon Musk [Image source=Twitter capture]

Dave Portnoy, CEO of the cultural media outlet Barstool Sports, tweeted on the same day criticizing Musk, saying, "Musk caused the Bitcoin surge and sold at the peak to take massive profits."

In response, Musk immediately posted a rebuttal tweet, stating, "I have not sold any Bitcoin that I personally hold," and "Tesla's sale of some Bitcoin was to demonstrate that Bitcoin holds value as a liquid asset in cash form." Earlier, CFO Kirkhorn also emphasized during Tesla's earnings announcement that "we are satisfied with Bitcoin's liquidity and intend to invest long-term," highlighting that Bitcoin is not a means for short-term profit-taking.