In Bitcoin’s brutal quarter, Tesla could report losses of up to $ 100 million

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

Kate Rooney – CNBC business analyst

With the price of Bitcoin recently falling to the level last surveyed in January, CNBC business analyst Kate Rooney claimed on July 6 that Tesla could expect “loss costs”.

When Tesla first announced $ 1.5 billion worth of Bitcoin purchases in February, followers believed the electric vehicle maker could be at a loss by the end of the quarter.

“Tesla holds crypto as an intangible asset, and due to accounting regulations, if the value of Bitcoin falls to a certain level, the company must demonstrate that decline in its financial statements.”

“Tesla said that if the price of Bitcoin falls below cost, or at which Tesla bought it, it will incur a loss at some point after the purchase.”

Kate Rooney claims unnamed sources could estimate Tesla’s paper loss fee between $ 25 million and $ 100 million.

However, she added that Tesla also cannot report any appreciation in the value of Bitcoin, which they hold until a short position is taken.

Elon Musk has made a huge impact in the crypto community over the past few months, with Tesla supporting investments and payments that help propel the rally for Bitcoin to all-time highs.

However, Tesla’s suspension of Bitcoin payments due to concerns about the environmental impact of its mining operations along with his continued support for Dogecoin on Twitter made Musk unpopular with the majority of the crypto community.

About 11 hours ago, Reddit user “StablecoinsFraud” posted a screenshot of a tweet that he believes Musk was deleted after increasing the price of Bitcoin.

“Elon Musk deleted a post that he posted last night that increased the price of Bitcoin.”

Teacher

According to Cointelegraph

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