Tesla discloses $222 million worth of Bitcoin holdings in latest SEC filing – Bitcoin Featured News


Tesla revealed that it still held $222 million worth of bitcoin in market capitalization after selling 75% of its crypto holdings. The company posted a realized gain of $64 million on the recent conversion of bitcoin to fiat currency.

Tesla Makes $64 Million Gain From Selling Bitcoin

Tesla Inc. presented. Second Quarter Report with the US Securities and Exchange Commission (SEC) on Monday.

The company has made it clear that it has converted about 75% of its bitcoin holdings into fiat currency, as Bitcoin.com News reported last week. The BTC The transfer added $936 million in cash to the electric car company’s balance sheet.

Tesla told the Securities and Exchange Commission that in the second quarter:

We recorded $170 million in impairment losses arising from changes to the book value of our bitcoins and gains of $64 million on certain bitcoin-to-fiat currency conversions by us.

Tesla originally bought $1.5 billion worth of bitcoin in the first quarter of 2021. In the same quarter, the company sold BTC Worth $272 million. Bitcoin price fluctuated between $32,000 and $59,000 in the first quarter of 2021.

The electric car company stated in the Securities and Exchange Commission filing that it made a gain of $128 million from converting its car BTC to fiat currency in the first quarter of 2021. Additionally, the company incurred $23 million and $50 million in bitcoin depreciation losses in the second quarter of 2021 and the first half of 2021, respectively.

Tesla’s digital assets are mostly made up of Bitcoin

Tesla explained in a filing Monday with the Securities and Exchange Commission that it purchased $1.5 billion worth of bitcoin in the first quarter of 2021. In addition, it acquired an “immaterial amount” of digital assets during the first half of this year.

Although Tesla did not say what other crypto assets it holds, the company has been accepting meme cryptocurrency dogecoin (DOGE) for some merchandise since January.

The balance sheet showed that the book value of Tesla’s digital assets owned reached $218 million at the end of the second quarter. The electric car company explained:

The fair market value of these digital assets owned as of June 30, 2022 was $222 million.

On June 30, price BTC It was hovering around $20,000, after briefly dropping to $18,784. At the time of writing this report, BTC It is trading at $21,869, based on data from Bitcoin.com Markets.

Tesla CEO Elon Musk said during the company’s second-quarter earnings call last week that the company sold most of its sales. BTC Due to concerns “about the company’s overall liquidity, given the Covid lockdown in China.” Noting that Tesla has not sold any Dogecoin, Musk emphasized: “We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as a judgment on bitcoin.”

What do you think Tesla still holds $222 million worth of bitcoin? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been a missionary ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

photo credits: Shutterstock, Pixabay, Wikicommons

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