Tesla holds nearly $2 billion worth of bitcoins

Tesla holds nearly $2 billion worth of bitcoins

In a Feb. 7 filing with the US Securities Exchange Commission (SEC), Tesla said it held nearly 2 bitcoins worth of bitcoin. billion dollars end of 2021.

This electric car company bought this cryptocurrency for 1.5 in February last year billion dollars. This coin continuously fluctuated wildly when it reached $66,000 in May 2021 but then dropped to 30,000 U.S. dollar in July 2021 in view of control from China. In early November 2021, Bitcoin reached an all-time high of over 68,000 U.S. dollar before the year 2021 ends at 46,000 U.S. dollar per dong, an increase of almost 60% compared to the start of the year.

Tesla once allowed customers to buy cars with this cryptocurrency, but in May 2021 the company withdrew its statement over concerns that bitcoin mining has negative environmental impacts and is contributing to the transformational climate.

Tesla does not consider Bitcoin a mark-to-market asset, meaning that this holding only affects Tesla’s profits at the time of purchase or sale.

Therefore, Bitcoin’s drop won’t impact profits until Tesla sells.

In the submitted profile SECTesla said it posted a 101 loss million dollars in 2021 from a Bitcoin investment on the grounds that the value of this cryptocurrency has fallen. However, Musk’s company also earned 128 million dollars after selling part of bitcoin held in March last year. While selling some bitcoin, Musk once claimed that “Tesla is only selling about 10% of its holdings” to confirm that this coin has slight liquidity without impacting the market.

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