Elon Musk, the CEO of Tesla.
Christophe Gateau / Picture Alliance via Getty Images
Elon Musk, Tesla CEO, said Sunday that the company will resume Bitcoin transactions once it confirms the miners are consuming a reasonable amount of clean energy.
“If there is a confirmation of reasonable (~ 50%) clean energy consumption by miners with a positive future trend, Tesla will allow Bitcoin transactions again.”
Musk responded Comments from Magda Wierzycka, CEO of South African asset manager Sygnia, who said Musk’s tweets about Bitcoin prices were “market manipulation” and should have sparked an investigation by the US Securities and Exchange Commission.
Tesla announced in an SEC filing in February that it had purchased $ 1.5 billion worth of Bitcoin and announced it would accept Bitcoin as a payment method for its products.
However, the electric automaker stopped buying a car with Bitcoin in mid-May, amid concerns about how cryptocurrency mining, which requires banks with powerful computers, is contributing to climate change.
“We are concerned about the rapidly increasing use of fossil fuels in Bitcoin mining and transactions, especially coal, which is the worst emissions of any fuel,” Musk said in May.
On Sunday, Musk controversial He explained to Wierzycka’s allegations of market manipulation: “Tesla sold around 10% of its Bitcoin holdings to confirm that BTC could easily be liquidated without market movements,” he said. In the first quarter, Tesla sold “digital assets” valued at $ 272 million. This helped reduce operating losses by $ 101 million, the company announced on its income statement.
Musk’s comments on social media about cryptocurrency often make prices soar or decrease, but seemed to have little effect on Sunday. According to Bitcoin, it was $ 37,442 Coindesk, around 2:30 p.m. ET, more than 4% over the day.