Elon Musk’s decision to sell Tesla’s BTC stash won’t affect Bitcoin’s fundamentals, says CZ
The Binance CEO said that he still holds almost all of the “original ones” or those BTCs he bought since the beginning and he only sold less than one percent of his accumulated stash.
Mon, 25 Jul 2022, 19:55 pm UTC
Binance’s CZ Zhao does not think that Tesla CEO Elon Musk’s actions will significantly impact Bitcoin’s (BTC) price. The CEO of the world’s largest crypto exchange by volume remains bullish on BTC’s long-term prospects and even revealed that he still has not sold most of the coins he bought when he first entered the crypto space.
CZ made his comments after Tesla sold 75 percent of its Bitcoin holdings last week. However, the crypto exchange CEO isn’t too concerned about Elon Musk’s decision to offload his electric car company’s BTC stash as he explained that Musk’s decision to either buy or sell the crypto “does not mean much” as it won’t affect Bitcoin’s fundamentals, according to CryptoPotato.
On Tuesday last week, Tesla revealed in its second quarter2022 earnings report that it “converted approximately 75% of [its] Bitcoin purchases into fiat currency… Conversions in Q2 added $936M of cash to our balance sheet.”
Elon Musk later explained that Tesla had to sell nearly $1 billion worth of Bitcoin to help the carmaker meet the unexpected rise in its operating costs. Production costs in China soared to unforeseen levels due to the lockdowns. He added that the company also needed fresh funds for the operation of its newly opened factories in Berlin and Austin, Texas, which he previously described as “gigantic money furnaces.”
In a recent interview with CNBC, CZ was asked if his company has some exposure to the hedge fund Three Arrows Capital and the crypto lenders Voyager Digital and Celsius. The Binance chief described his firm’s exposure as “very minimal.”
“We don’t have any loans to them,” he added. “We don’t owe them any money. So we have not been involved in that. Our name just never came up in any of those situations.”
When asked if Binance foresaw the risky position of those firms, CZ jokingly replied that it’s because they are dumb, which explains their lack of involvement. “I think because we are dumb. We like to do things in a simple way… We ran an exchange, we’re not in the loans business. I wouldn’t say we’re smart, we’re just very simple about it.”
He added that the recent negative headlines will have some sort of negative impact on the market. However, he believes that the industry will be fine as there have always been negative headlines surrounding the crypto space in the past.
When asked if he sold his Bitcoin stash since the crypto market downturn, he explained that he still holds almost all of the “original ones” or those BTCs he bought since the beginning. In fact, he only sold less than one percent of his accumulated stash.
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