The CEO of Binance is weighing in after the news broke that electric vehicle maker Tesla unloaded the majority of its Bitcoin (BTC) holdings.
In a new interview with Fox Business, Binance head Changpeng Zhao tells host Neil Cavuto people shouldn’t read too deeply into Tesla CEO and crypto advocate Elon Musk cashing out of Bitcoin so heavily.
“He’s a smart guy but it doesn’t mean that he holds every valuable asset in the world. He probably doesn’t hold many other company stocks, many other valuable cryptocurrencies, etc.
Just because he buys and sells some Bitcoin doesn’t mean that because he buys Bitcoin it got better, or because he sold Bitcoin it became worse.”
The Binance CEO, who Forbes ranks number one on its list of wealthy crypto personalities, says that regardless of what any big investor is doing, Bitcoin continues to prove itself both structurally and in terms of user popularity.
“The fundamentals are there, the use cases are there, the user numbers are there, the community is there. The fundamental properties of Bitcoin didn’t change because one guy bought or sold.
Nobody knows what are the reasons why he bought or sold. Maybe he needed cash for Tesla or trying to buy Twitter or something else, I don’t know. But it doesn’t really mean much.”
Earlier this week, Tesla revealed it had sold 75% of its BTC holdings for $936 million in cash during the second quarter of 2022.
Musk explained the rationale behind the move in a company earnings call by saying,
“It should be mentioned that the reason we sold a bunch of our Bitcoin holdings was that we were uncertain as to when the Covid-19 lockdowns in China would alleviate.
So it was important for us to maximize our cash position, given the uncertainty of the Covid-19 lockdowns in China.
We are certainly open to increasing our Bitcoin holdings in the future, so this should not be taken as some verdict on Bitcoin.”
As of June 30th, the total worth of Tesla’s remaining Bitcoin stood at $218 million.
Bitcoin is currently down by 1.45% over the last 24 hours, trading for $22,731.
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