Tesla Reveals Still Holding $222 Million In Bitcoin Value
Tesla has revealed that it still holds $222 million worth of Bitcoin after selling 75% of its total crypto holdings. The company recorded a net profit of $64 million from the move.
During the first six months of 2022, Tesla recorded $170 million in losses “due to a change in book value” of its Bitcoin holdings, according to an official Form 10-Q filing with the United States Securities and Exchange Commission (SEC).
Converting about 75% of its Bitcoin holdings into fiat currency helped Tesla add $936 million in cash to its balance sheet.
Tesla originally purchased $1.5 billion in Bitcoin in Q1 of 2021. The company sold $272 million worth of BTC in the same quarter. Bitcoin price fluctuated between $32,000 and $59,000 in Q1 2021.
The electric car giant announced in its filing with the SEC that it received a profit of $128 million from converting BTC into fiat currency in Q1 of 2021. Additionally, the company posted a loss of $23 million in Q2 2021 and $50 million in the first half of 2021. In addition to the $1.5 billion worth of Bitcoin the company bought in Q1 2021, Tesla also received “an amount of non-physical digital assets” in the year’s first half.
According to Bitcoin Treasuries, the electric vehicle maker still has 10,800 BTC on its books. At the current price of around $21,000 BTC, Tesla’s digital assets are worth around $225 million, not much difference compared to the time of submitting the report to the SEC.
The Form 10-Q disclosure does not reveal any new details about Tesla’s digital asset strategy. However, the company has stated that it can increase or decrease its holdings over time:
“As with any investment and consistent with how we manage fiat-based cash and cash equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of market and environmental conditions.”
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