Experts Say Bitcoin’s Brutal Quarter Could Show Up To Tesla Report

Bitcoin’s price drop in the second quarter led experts to speculate that Tesla may have to report a loss of up to $ 100 million for the second quarter.

With Bitcoin price recently falling to levels last polled in January, CNBC business analyst Kate Rooney claimed on July 6 that Tesla could expect a “loss fee”. (SECTIONS).

She noted that when Tesla first announced its $ 1.5 billion purchase of Bitcoin in February, Tesla believed the electric vehicle maker may have been underwater by the end of the quarter.

“Tesla treats crypto as an intangible asset, and accounting rules require companies to record this in their financial statements when the value of Bitcoin falls below a certain level,” Rooney said, adding:

“Tesla said if bitcoin price falls below actual price at any point after purchase, or where Tesla purchased it, an impairment loss will be recorded.”

The analyst claims that unnamed sources estimate that the damage load on paper could result in $ 25 million to $ 100 million in damage to Tesla.

However, Rooney added that Tesla will also not be able to mark the price of the BTC it holds until the position is taken in the form of a sale.

Tesla CEO Elon Musk has emerged as a major polarizing figure for the crypto community in recent months, with the company’s Bitcoin investments and support for BTC payments helping to fuel new investments.

The combination of Tesla’s suspension of BTC payments due to concerns about the environmental impact of mining and Musk’s continued support for Dogecoin based on Twitter, however, the business tycoon was unpopular with the majority of the public electronic currency.

About 11 hours ago, Reddit user “StablecoinsFraud” posted a screenshot of a tweet he believes Musk was deleted after driving the price of BTC up. “Elon Musk deleted a post he posted last night about the Bitcoin price pump. Someone in his ear? “You write.