Tesla, which made waves last year when it revealed a major investment in Bitcoin, has now sold off most of its holdings of the cryptocurrency.

The electric car firm has offloaded 75 per cent of its Bitcoin, which was worth about $2 billion (Sh237 billion) at the end of 2021.

It is backing away as the value of the cryptocurrency has plunged, falling by more than 50 per cent this year.

Tesla said it bought traditional currency with the $936 million from its Bitcoin sales.

Tesla boss Elon Musk has been among the most high profile champions of cryptocurrency, with his pronouncements on social media often driving significant trading activity.

Volatile prices

Tesla’s $1.5 billion investment in Bitcoin, revealed in February 2021, prompted a surge of demand in the currency. The price of the notoriously volatile cryptocurrency soared last year to almost $70,000 in November before crashing.

Tesla last year stopped accepting Bitcoin as payment for its cars, citing concerns about the climate impact of energy-intensive Bitcoin mining.

At the time, Musk said on social media that the company would not be selling the Bitcoin it owned.

Last year, Elon Musk took to Twitter to outline Tesla’s position on Bitcoin.

“Tesla will not be selling any Bitcoin”. That sounds pretty emphatic.

Yet from the mouth of the world’s richest person, statements should be taken with not just a pinch but a shovel of salt.