Elon Musk and Tesla made a big investment into Bitcoin at the start of the year and despite its value falling in recent days, the entrepreneur has implied that the automaker will not be shedding its stake in the cryptocurrency.
Taking to Twitter after a sell-off that at one point saw Bitcoin shed half of its value in 24 hours, Musk said that Tesla has ‘diamond hands’, a term used to describe traders and investors who hold on to their assets.
Tesla has 💎 🙌
— Elon Musk (@elonmusk) May 19, 2021
Tesla and Elon Musk’s investment and endorsement of Bitcoin in recent months helped to boost prices to an all-time high of $64,829 in mid-April. However, the value of the world’s largest cryptocurrency fell last week when Musk announced that Tesla would no longer accept Bitcoin as a form of payment for its vehicles due to environmental concerns related to the mining process.
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Not only has the value of Bitcoin fallen, but shares in Tesla also dropped by as much as 3.2 per cent. As such, the company’s shares have lost more than 20 per cent of their value this year following a remarkable run throughout 2020 that saw the company’s shares soar from roughly $88 at the start of January 2020 to a peak of $883.09 on January 26, 2021.
Tesla purchased $1.5 billion worth of Bitcoin in the first quarter but later sold $272 million worth for a $101 million profit.