Elon Musk, founder of SpaceX and chief executive officer of Tesla, waves as he arrives for a discussion at the Satellite 2020 conference in Washington, DC on Monday, March 9, 2020.
Andrew Harrer | Bloomberg | Getty Images
Elon Musk, CEO of Tesla, implied in a Twitter exchange on Sunday afternoon that the electric vehicle maker might or may not sell the rest of its Bitcoin holdings, lowering the price of the cryptocurrency.
Bitcoin fell nearly 8% to around $ 44,000 per coin.
A Twitter user walking past @CryptoWhale said, “Bitcoiners will beat themselves in the next quarter if they find out Tesla dumped the rest of their holdings. With the amount of hatred @elonmusk I wouldn’t blame him … “
Musk replied, “Indeed.”
A potential sale comes just days after Musk announced it would hold the bitcoin it already had instead of selling it, and intends to use it for transactions once mining moves to more sustainable energy.
Musk has been a huge proponent of cryptocurrencies and has helped raise the prices of digital coins, including Bitcoin, several times over the past year. In a February SEC filing, Tesla announced that it had purchased $ 1.5 billion worth of Bitcoin. The company later announced that it posted $ 101 million in net income from the sale of Bitcoin for the quarter, which helped push its net income to a record high in the first quarter.
However, Musk appears to have reversed course in favor of Dogecoin, the meme-inspired cryptocurrency, in recent weeks. Tesla also “suspended the purchase of vehicles using Bitcoin” last week amid concerns about the “rapidly increasing use of fossil fuels to mine Bitcoin”. Bitcoin price fell about 5% in the first few minutes after Musk’s announcement.
Musk has since struggled on Twitter against users criticizing his stance on cryptocurrencies. Influential venture investor Fred Wilson, founding partner of Union Square Ventures, tweeted on Friday: “He plays games. It’s hard to take someone who does that seriously. I’ve lost tremendous respect for them over the past year.”
Wilson added, “Deep respect for what he does with his talents. Less for what he does with his tweets.”
He is also pushing further into the doge coin. His aerospace company SpaceX announced last week that it would accept Dogecoin as payment for the start of the “DOGE-1 Mission to the Moon”. His recommendations have helped increase the price of the coin and increase acceptance by some merchants.
The crypto exchange platform Coinbase has announced that it will offer the digital coin in the next six to eight weeks. Other popular trading platforms among retail investors, Robinhood and Binance, already allow users to trade Dogecoin.