Tesla Records $140M Loss From Bitcoin Investment In 2022
Tesla Records $140M Loss From Bitcoin Investment In 2022.
In a recent filing with the United States Securities and Exchange Commission on January 31st, major electric vehicle manufacturer Tesla revealed that it had recorded a massive $140 million loss in 2022 due to its Bitcoin holdings.
BTC Loss
In their filing, Tesla explains that on December 31st 2022, the company reported $204 million worth of impairment losses due to the change of Bitcoin’s value over time. However, the company also explains that they had gained around $64 million in fiat currency from selling a lot of their Bitcoin holdings, leaving them with a loss of $140 million in total.
Tesla also further explains the impact of crypto’s volatile prices, stating, “Digital assets are considered indefinite-lived intangible assets under applicable accounting rules. Accordingly, any decrease in their fair values below our carrying values for such assets at any time subsequent to their acquisition will require us to recognize impairment charges, whereas we may make no upward revisions for any market price increases until a sale. For any digital assets held now or in the future, these charges may negatively impact our profitability in the periods in which such impairments occur even if the overall market values of these assets increase.”
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Tesla & Bitcoin
In the past, Tesla as well as their CEO Elon Musk has often voiced their support and optimism towards cryptocurrencies like Bitcoin and Dogecoin. Musk had even announced that he would accept Bitcoin payments for certain Tesla merchandise in 2021.
In the first quarter of 2021, Tesla had invested up to $1.5 billion in Bitcoin, citing that they are optimistic on the longevity of the cryptocurrency. Despite this however, the crypto winter faced throughout 2022 seemed to have forced Tesla to sell 75% of all of its Bitcoin holdings.
At the time of writing, Tesla is still holding around $184 million worth of Bitcoin and seems to be waiting for the cryptocurrency to rebound its price.
₿REAKING: Tesla is hodling $184 million of #bitcoin pic.twitter.com/7cmOyPyldX
— Documenting ₿itcoin 📄 (@DocumentingBTC) January 26, 2023
Tesla CEO Elon Musk also seems to remain bullish and optimistic towards cryptocurrencies in general. Just a few days ago, Musk stated that he had plans to integrate crypto options for Twitter’s upcoming payment system sometime in the future.
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