Tesla has about $1 billion in bitcoin holdings that it has sold.

Tesla, owned by Elon Musk, has liquidated the majority of its $936 million worth of Bitcoin assets. Approximately 75% of the company's entire Bitcoin holdings are represented by this, according to its Q2 earnings report.

The electric car manufacturer stated at the company's shareholder presentation that "Bitcoin Impairment" had a detrimental effect on profits during the second quarter, undoubtedly alluding to the most recent crypto slump. The business did, however, also generate operating profit of $2.5 billion during the same period.

Unsurprisingly, the news was promptly reacted to by the Bitcoin market. On Wednesday, bitcoin was about $24,000, but just after the markets closed, its value fell significantly to $23,078.

The second-largest cryptocurrency by market capitalization, Ethereum, experienced a 3 percent decline soon after Tesla's financial report became public.

Elon Musk and Tesla have a sporadic connection with bitcoin. Tesla changed its policy that permitted it to store digital assets in February 2021, at which point it invested $1.5 billion in Bitcoin. This action led to Bitcoin reaching a new record high of $43,000.

However, Musk declared in May 2021 that Tesla would stop taking Bitcoin as payment due to worries about the negative effects of bitcoin mining on the environment.

However, it also forewarned investors about the potential harm that pricing fluctuations could do to profitability, as we can now see in the business' most recent financial report.