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| Elon Musk CEO Tesla |
Tesla CEO Elon Musk declared on Tuesday that the electric vehicle maker had sold 10% of its bitcoin holdings to prove that it's a good substitute for cash.
He was responding to comments from the Barstool Sports founder Dave Portnoy, who questioned whether Tesla had profited from a bitcoin pump-and-dump scheme, a practice that encourages investors to boost the price of an asset-based on exaggerated statements.
Tesla disclosed on Monday that it had cashed out $272 million worth of digital assets in the first quarter of 2021, making more than $100 million in profit. The automaker's first-quarter earnings showed continued profitability as revenue rose 74% from the same period in 2020.
After the earnings report, Portnoy tweeted:
So am I understanding this correctly? @elonmusk buys #bitcoin. Then he pumps it. It goes up. Then he dumps it and make a fortune. Listen I own 1 #Bitcoin but #bitcoin is exactly who we thought it was. Just don’t be last 1 #HODLing the bag.
— Dave Portnoy (@stoolpresidente) April 26, 2021
Earlier this year, Portnoy said he would never buy bitcoin, but he's changed his stance and called himself a true believer in cryptocurrency.
On an earnings call with investors and analysts, Tesla's chief financial officer, Zachary Kirkhorn, said the company planned to continue adding bitcoin to its balance sheet from vehicle sales.
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