Site icon Crypto Academy

Tesla Announces $64M Profit From Selling Its Bitcoin Holdings

In the second quarter, Elon Musk’s Tesla sold 75% of its Bitcoin (BTC) holdings. Both inflation and the battery cell market’s rivalry affected the company’s overall profit.

Even when cryptocurrency prices fell into a bear market in the second quarter, Tesla’s choice to sell the majority of its Bitcoin (BTC) assets resulted in the company making a sizable profit.

According to an official Form 10-Q filing with the United States Securities and Exchange Commission, or SEC, Tesla reported $170 million in impairment losses “resulting from changes to the carrying value” of its Bitcoin (BTC) holdings in the first half of 2022. 

The company had a realized gain of $64 million after selling 75% of its Bitcoin(BTC) stock for dollars in the second quarter.

An impairment loss in finance happens when the fair value of an asset owned by a company decreases below the investment’s carrying value.

With second-quarter revenues of $16.93 billion, Tesla earned $2.27 per share. Even though it was lower than it had been in the first quarter, profit was higher than it had been a year earlier. However, escalating inflation and intensifying competition for battery cells influenced the company’s profitability.

10,800 Bitcoins (BTC) are still held by the manufacturer of electric vehicles. Elon Musk‘s Tesla digital asset holdings are currently valued at about $22,000 Bitcoins (BTC), or about $237 million.

There were no new revelations regarding Tesla’s digital asset strategy in the 10-K report. The company did note that its interests might change over time and could grow or reduce:

“As with any investment and consistent with how we manage fiat-based cash and cash equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of market and environmental conditions.”

Exit mobile version