Elon Musk, the CEO of Tesla, stated on Sunday that the company will resume bitcoin transactions after it has confirmed that miners are using fair amounts of sustainable energy.
Musk responded earlier to the remarks made by Magda Wierzycka, CEO of South African asset management Sygnia by saying when there’s confirmation of reasonable 50 percent clean energy usage by miners with positive future trend Tesla would resume allowing bitcoin transactions.
Musk was responding to remarks where it was claimed that Musk’s tweets about bitcoin pricing constituted market manipulation and should have prompted an SEC inquiry.
Tesla stated in a February SEC filing that it had purchased $1.5 billion in bitcoin and will begin taking bitcoin as a form of payment for its products.
However, in mid-May, the electric-vehicle manufacturer froze bitcoin car purchases due to worries about how cryptocurrency mining, which necessitates the use of large clusters of powerful computers, contributes to climate change.
Last month in May, Elon Musk said that they are worried about the rapidly growing use of fossil fuels for Bitcoin mining & transactions. And they are specifically disturbed about use of coal, which is the worst amongst all the other fuel emissions.
Musk responded to Wierzycka’s claims of market manipulation on Sunday, revealing that Tesla sold around 10% of its bitcoin holdings to validate BTC could be liquidated simply without impacting the market. Tesla sold $272 million in digital assets in the first quarter, which helped the business cut operational losses by $101 million, according to its financial statement.
Musk’s statements about cryptocurrencies on social media often send prices flying or tumbling, but they appeared to have little impact on pricing on Sunday. During the day, bitcoin prices increased by roughly 8%.