Musk Sells Tesla Stock Worth $3.58 Billion, Will He Buy Bitcoin?

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For the fourth time this year, Elon Musk has sold Tesla shares worth billions. The crypto community is wondering if and what implications this might have on its Bitcoin and Dogecoin holdings, or even Tesla’s BTC holdings.

Musk sold $3.58 billion worth of stock from Monday to Wednesday, a filing with the U.S. Securities and Exchange Commission shows. What Musk plans to use the money for now is unclear. Naturally, the crypto community is speculating on what will happen with the money. Since Musk announced the now-completed acquisition of Twitter in April 2022, the entrepreneur has parted with $23 billion worth of Tesla stock.

Funds from Tesla’s previous stock sales likely went into the Twitter acquisition, which ended up costing Musk $44 billion. This costly takeover was not rosy for the billionaire. In recent weeks, the Tesla CEO has faced heavy criticism from the mainstream media. Some big companies have stopped advertising on Twitter.

Because of this, there has been a big loss of revenue, Musk admitted. But Tesla’s stock value has also more than halved since April. Many investors fear that Musk will become so taken up with Twitter that he no longer focuses on Tesla.

“It doesn’t inspire confidence in the company and says a lot about where its focus is,” said IG Markets analyst Tony Sycamore.

The performance of Tesla stock is surprisingly similar to that of Bitcoin. While Tesla stock has lost -58.13% YTD, BTC price has fallen -60.29% YTD.

Will Elon Musk buy Bitcoin or Dogecoin?

Even though many bitcoin investors see the current situation as a good opportunity to buy bitcoin at a lower cost, it is not known if Elon Musk or Tesla share this opinion.

Currently, there is no BTC on-chain data to suggest such action. Musk using his Tesla shares to buy Dogecoin also seems highly unlikely. Otherwise, it would probably take a massive DOGE price pump. It will not be known whether Tesla will buy the BTC drop until its fourth quarter earnings report, which is due out on January 25, 2023. Tesla has already sold 75% of its Bitcoin holdings.

His remaining holdings are currently estimated at 10,500 BTC. As the electric car maker revealed in its latest earnings report, the company neither sold its BTC holdings nor purchased additional Bitcoin in the third quarter of 2022.

Musk said on a second-quarter earnings conference call that Tesla’s latest BTC reserve sale occurred due to COVID block uncertainty in China. Remarkably, he noted that Tesla is willing to increase its exposure to BTC in the future.

At press time, BTC price stood at $17,724 and was rejected at key resistance at $18,220.

BTC price, 1-day chart. Source: Trading View

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