Tesla recorded a $204 million impairment loss in 2022 on its bitcoin holdings, in response to regulatory filings. The loss was offset by $64 million in earnings from bitcoin buying and selling, leaving the automaker with a internet lack of $140 million.
Tesla had invested $1.5 billion in bitcoin in the course of the first quarter of 2021, stating that it believed within the longevity of the cryptocurrency. On the time, the corporate stated bitcoin was an incredible place to retailer money and nonetheless entry it instantly, all of the whereas offering a greater return on funding than extra conventional central banks. The truth is, after its preliminary buy, Tesla promptly trimmed its place by 10%, making the automaker a fast $101 million.
In March 2021, CEO Elon Musk stated Tesla would begin accepting bitcoin as funds for Tesla automobiles, inflicting the worth of the crypto to growth. A number of weeks later, Musk and Tesla backpedaled on that call, expressing concern for the quantity of vitality wanted to mine bitcoin. The value of bitcoin then subsequently sank.
Final yr, as the worth of bitcoin started to plunge, Tesla offered 75% of its bitcoin holdings and used the proceeds to purchase conventional forex. The automaker in the present day owns about $184 million value of bitcoin, and could also be holding out for a rebound.
The crypto market has skilled a dramatic drawdown over the previous yr. As we speak, bitcoin is buying and selling at $23,045.50, which is about 66% beneath the all-time excessive of $68,789.63. Regardless of dropping over half its worth, some consultants say bitcoin has remained resilient and will expertise a comeback, particularly as consumers spooked by the crypto market usually gravitate towards family names and extra mature ecosystems, like bitcoin or ether.
Tesla disbanded its press division and couldn’t be reached for remark.
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