Site icon CoinDCX-Blog

Top Crypto News: Tesla Reports $64 Million Profit on Bitcoin Sales

Crypto News Today: Tesla reports $ 64 Million in Profit from Bitcoin Sell off

Amidst the crypto recovery, Musk’s automobile firm Tesla sold 75% of its Bitcoin holdings in Q2. The firm sold Bitcoin worth $ 936 Million to square off their gains from the investments to combat the competition for batteries and the continued lockdown in Shanghai. 

In an SEC filing, Tesla reported that it invested $1.5 billion in BTC in the first quarter of 2021. Musk reported that Tesla’s BTC holdings were making the firm lose $170 million owing to the crypto meltdown and the inflation combined.

The BTC’s sell-off profited Tesla with $ 64 Million in profit. With the advent of the crypto winter in Q1 2022, the firm’s BTC holdings impaired losses worth $ 170 million, according to form 10-Q filing to the SEC. 

As per finance as a subject, an event can be deemed as an impairment loss if the fair value of an asset held by a company falls below the carrying value of the investment. The value of Bitcoin hovered at $ 20,000 from an all-time high of $ 30,000. 

The EV maker has 10,800 BTC on its books, as per the Bitcoin Treasuries. At the current price of BTC swinging around $22,000, Tesla’s digital asset holdings are roughly worth $237 million. Tesla accounted for revenues of $ 16.93 billion with per-share earnings of $2.27 in the second quarter of 2022. 

Additional Read: Top Crypto Prices Today

The 10 Q filing did not reveal any digital asset investment strategy. The firm did mention that it may sell or buy digital assets as the market situation demands.

A spokesperson from Tesla stated, “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.”

Elon in his previous statement on selling Bitcoin stated that Tesla’s selling off Bitcoin should not be looked at as a verdict on the digital asset. Elon has been a candid supporter of crypto and has the moniker ‘Dogefather’ attached to his reputation. He has been an ardent supporter of Dogecoin. Elon iterated that Tesla has sold off the BTC holdings but has kept DOGE holdings intact. He has been touted as the crypto influencer on Twitter as he publishes his opinions and business announcements around Bitcoin and Dogecoin. In the past, he has been accused by a crypto investor with a lawsuit for influencing the crypto market. Musk denied these allegations and went on to say he will buy more Dogecoin. 

Musk commented, “I have never said that people should invest in crypto. In the case of Tesla, SpaceX, myself, we all did buy some Bitcoin, but it’s a small percentage of our total cash assets,” at Qatar Economic Forum.

Source: Cointelegraph, Mashable India

Additional Read:Why did Tesla sell 75% of its Bitcoin

Exit mobile version