Tesla announced that its bitcoin holdings are still worth $222million in market value, even though it has sold 75% off its crypto holdings. Tesla realized gains worth $64 millions on the recent conversion of bitcoin into fiat currency.
Tesla realizes gains of $64 million from the Bitcoin sale
Tesla Inc. filed Monday its second-quarter reports with the U.S. Securities and Exchange Commission.
According to Bitcoin.com News, the company stated that 75% of its bitcoin assets were converted into fiat currency. The BTC conversion added $936 million of cash to the electric car company’s balance sheet.
Tesla stated to the SEC:
Impairment losses of $170 Million were incurred due to changes in the carrying value and gains of $64,000,000 on certain bitcoin conversions by us into fiat currencies.
Initial purchase of $1.5 Billion in bitcoin by Tesla was made Q1 2021. The company also sold BTC in the quarter worth $272 millions. In Q1 2021, bitcoin prices fluctuated between $32K and $59K levels.
According to the SEC filings, the electric vehicle company claimed that $128million was earned from trading its BTC in fiat currency during Q1 2021. Additionally, there were $23 million, $50 million, and 50 million respectively of bitcoin impairment losses in Q2 2021 & 1H 2021.
Tesla’s Digital Assets Mostly Consist of Bitcoin
Tesla stated in its Monday filing to the SEC that it had purchased bitcoin for $1.5 billion during Q1 2021. In addition, it received “an immaterial amount” of digital assets during the first half of this year.
Tesla has not yet listed any crypto assets that it holds, however the company is known to have been using DOGE (meme cryptocurrency) as a payment for merchandise starting in January.
The carrying value of Tesla’s digital assets held was $218 million as of the end of the second quarter, its balance sheet shows. According to the company, there are:
As of June 30, 2022, the fair market value for such digital assets was $222 Million.
After falling to $18,784, the BTC price hovered around $20K on June 30. Based on Bitcoin.com Markets data, BTC trades at $21,869 as of the writing date
Tesla CEO Elon Musk said during the company’s Q2 earnings call last week that the company sold most of its BTC due to concerns “about overall liquidity for the company, given Covid shutdowns in China.” Noting that Tesla has not sold any dogecoin, Musk stressed: “We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as some verdict on bitcoin.”
Do you still believe Tesla holds bitcoins worth $222 millions? Comment below.
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