According to data from the EV maker’s most recent earnings report, Tesla incurred a $34 million impairment charge on its bitcoin holdings in the most recent quarter. The company’s holdings of 10,725 bitcoin remained constant in the fourth quarter due to no purchases or sales. The value of Tesla’s bitcoin dropped from $218 million to $184 million at the conclusion of the previous quarter.
Tesla are currently holding $184 Million worth of digital assets, including #Bitcoin and #Dogecoin pic.twitter.com/YB1WSrJtQM
— Sir Doge of the Coin ⚔️ (@dogeofficialceo) January 26, 2023
Current Status of Tesla’s Bitcoin Assets
The collapse of FTX caused a 20% decline in the price of bitcoin over the final 2 months of 2022. Even though bitcoin has increased 38% since the beginning of 2023, the event contributed to a sharp decline in the value of cryptocurrencies on the worldwide market.
It implies that, barring a further sharp decline in cryptocurrency prices, Tesla’s accounting may vary in the upcoming quarter. Tesla’s bitcoin assets are now worth $248 million, just at the current price of $23,124 per bitcoin.
Tesla is one of the top five publicly traded corporations that own bitcoin, and CEO Elon Musk is a fervent supporter of cryptocurrencies. Before Tesla disclosing a $1.5 billion investment in cryptocurrency in 2021, he publicly considered transferring a sizable portion of the company’s balance sheet into bitcoin or dogecoin while praising them to his Twitter users.
However, Tesla has reduced its exposure to bitcoin due to Musk’s later criticism of bitcoin’s excessive carbon emissions. Early in 2021, the business liquidated 10% of its bitcoin holdings, and by the middle of last year, it sold off 75% of Tesla’s bitcoin holdings.
According to its latest earnings report, Tesla sold none of their $218 million worth of Bitcoin in Q4 last year.
It doesn’t take a lot to love or hate Elon, but he’s clearly walking the talk.
— Mario Nawfal (@MarioNawfal) January 26, 2023
