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Tesla boss Elon Musk has confirmed in a recent tweet that the company did not sell any of its holdings of the world’s largest digital currency, Bitcoin.
The tech tycoon made the statement in an effort to quell a panic sell-off on the crypto market. He was also clarifying an earlier exchange on Twitter that seemed to imply that the electric vehicle and clean energy company may sell or has sold its Bitcoin holdings.
In reaction to his tweet, Bitcoin increased from a record three-month low of $42,000 during the early hours of trade today to a high of about $45,600 this morning. This lifted the digital currency’s market capitalization to $850 billion from $790 billion.
Similarly, the total market capitalization of all cryptocurrencies surged by about $190 billion from a $1.9 trillion low recorded earlier today. This comes amid record profit-taking after a stall of overall bullish momentum in the market.
As of the drafting of this story, all crypto assets are trading at a total market capitalization of $2.06 trillion.
Last Wednesday night, Musk tweeted that Tesla had suspended vehicle purchases using Bitcoin over concerns of excessive energy use during the cryptocurrency mining process.
The tweet sent shock waves through the cryptomarket, as over $500 billion was wiped off the market in less than five days, with key digital currencies losing more than 10 percent of their respective value.
Despite showing concerns over the rapid increase in the use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions, Musk stated that Tesla will not sell its Bitcoin. He added that the company intends to use it for transactions as soon as mining transitions to a more sustainable form of energy usage.
