Elon Musk, the CEO of Tesla.
Christophe Gateau/photo alliance via Getty Images
Tesla CEO Elon Musk said on Sunday that the company will resume bitcoin transactions once it confirms reasonable use of clean energy by miners.
“If there is confirmation of reasonable (~50%) use of clean energy by miners with a positive future trend, Tesla will continue to allow bitcoin transactions.”
Musk responded to 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 prompted an investigation by the US Securities and Exchange Commission.
Tesla revealed in an SEC filing in February that it had purchased $1.5 billion worth of bitcoin and said it would start accepting bitcoin as a payment method for its products.
However, the electric car maker stopped buying cars with bitcoin in mid-May over concerns about how cryptocurrency mining, which requires banks with powerful computers, contributes to climate change.
“We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of all fuels,” Musk said in May.
On Sunday, Musk disputed Wierzycka’s allegations of market manipulation, explaining: “Tesla sold about 10% of its bitcoin holdings “to confirm that BTC can be easily liquidated without moving the market,” he said. for $272 million in “digital assets,” which allowed it to reduce operating losses by $101 million, the company revealed in its earnings statement.
Musk’s social media comments about cryptocurrency often send prices up or down, but seemed to have little effect on Sunday. Bitcoin was trading at around $37,442 around 2:30 p.m. ET, according to Coindesk, up more than 4% on the day.