- Tesla reported a $34 million impairment charge on its bitcoin holdings last quarter, in keeping with its recent earnings report.
- The worth of its bitcoin assets fell from $218 million within the third quarter to $184 million by the tip of the fourth quarter.
- Tesla has previously dialed back its exposure to bitcoin, and dumped 75% of its holdings within the second quarter of 2022.
Tesla took a $34 million impairment charge on its bitcoin holdings last quarter, in keeping with figures from the EV maker’s latest earnings report.
The corporate didn’t buy or sell any bitcoin within the fourth quarter, leaving its holdings regular at 10,725 bitcoin.
However the continued sell-off within the crypto market late last yr sent the worth of Tesla’s bitcoin to $184 million at the tip of last quarter from $218 million within the third quarter.
Bitcoin fell 20% during the last two months of 2022, largely because of the collapse of FTX, one in every of the world’s largest crypto exchanges on the time. The event fueled a steep drop in the worldwide market value of cryptocurrencies, though bitcoin has surged 38% from the beginning of 2023.
Meaning the accounting may look different for Tesla in the present quarter, barring one other steep crypto dive. Bitcoin is now trading at $23,124, bringing the present value of Tesla’s bitcoin holdings as much as $248 million.
Tesla is among the many top five public firms that hold bitcoin, in keeping with data from Buybitcoinworldwide, and CEO Elon Musk is a die-hard crypto enthusiast.
Previously, he touted bitcoin and dogecoin to his Twitter followers, and publicly mulled converting a big chunk of Tesla’s balance sheet into BTC in late 2020 before the corporate revealed a $1.5 billion investment within the cryptocurrency in 2021.
But Musk later criticized bitcoin for its high carbon emissions, and Tesla has dialed back its exposure to the cryptocurrency. The corporate sold 10% of its bitcoin holdings in early 2021, and dumped 75% of Tesla’s bitcoin holdings mid-last yr.