Tesla has revealed that the company recorded a $204 million impairment loss in 2022 on its Bitcoin investments. Tesla said, apart from the loss it recorded, it also made a profit of $64 million on certain conversions of Bitcoin, leaving the automaker with a net loss of $140 million. During the first quarter of 2021, Tesla invested $1.5 billion in Bitcoin, stating that it believed in the cryptocurrency’s long-term viability. As with any investment and consistent with how it manages fiat-based cash and cash-equivalent accounts. Tesla may increase or decrease its holdings of digital assets at any time based on the needs of the business, said the company.
Tesla incurred a $170 million loss from its Bitcoin investments in the first six months of 2022.
In July last year, Tesla revealed it incurred a $170 million loss from its Bitcoin investments in the first six months of the year. The company sold 75 percent of its Bitcoins, adding $936 million in cash to its balance sheet in the second quarter (Q2) last year. As it deals with an economic meltdown amid cryptocurrencies falling off the cliff. In the six month period ended June 30, 2022; Teala recorded $170 million of impairment losses resulting from changes to the carrying value of its Bitcoin and gains of $64 million on certain conversions of Bitcoin into fiat currency by it, Tesla revealed.
Tesla said last year that it would start accepting bitcoin as payments for Tesla vehicles, causing the price of the crypto to boom. A few weeks later they backpedalled on that decision, expressing concern about the amount of energy needed to mine bitcoin. The price of bitcoin then subsequently sank. In 2022 when the value of bitcoin became better, Tesla sold 75 percent of its bitcoin holdings and used it to buy traditional currency. Today, the company has $184 million worth of bitcoin.
