Chinese entrepreneur Justin Sun, who founded TRON Foundation (which is behind the TRX token) has said that Tesla selling 75% of its Bitcoin ($BTC) holdings is actually “great news” for a number of reasons.
In a tweet Sun shared with his over 3 million followers on the microblogging platform Twitter, TRON’s founder said that the market “no longer needs to worry about Tesla selling BTC,” which per his words had been haunting it for a long time. Moreover, Sun argued that Tesla selling nearly $1 billion worth of bitcoin shows that the flagship cryptocurrency’s liquidity can handle investments from large corporations.
Sun, who now serves as Grenada’s representative to the World Trade Organization in Geneva, added that Tesla completing bitcoin transactions “shows a good precedence for all enterprises holding BTC” and that as a result, he believes more large corporations will buy the cryptocurrency in the future.
As CryptoGlobe reported, Tesla sold $936 million worth of Bitcoin, equivalent to 75% of its holdings, in the second quarter of the year to maximize its cash position “given the uncertainty of the COVD lockdowns in China.”
Tesla CEO Elon Musk explained that Tesla is open to boosting its bitcoin exposure in the future and that “this should not be taken as some verdict on Bitcoin.” Musk also said Tesla did not sell any of its Dogecoin.
The electric car maker ended the second quarter with $218 million in bitcoin, down from $1.26 billion in the previous three quarters. The company held around 42,000 BTC heading into the quarter and may have avoided a substantial impairment charge by selling its holdings earlier in the quarter.
Tesla’s BTC sale announcement negatively impacted the cryptocurrency’s price, with it now trading at $22,600 after losing over 6.3% of its value over the last 24-hour period, according to CryptoCompare data. Bitcoin’s price fell amid a wider crypto market downturn.
Despite the recent downturn, the cryptocurrency space’s total market capitalization has managed to remain above the $1 trillion mark.
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