Tesla has disclosed that, despite selling 75% of its cryptocurrency assets, it is still holding bitcoin with a market value of $222 million. When the corporation recently converted bitcoin into fiat cash, it realized earnings of $64 million.
Tesla Makes $64 Million From Selling Bitcoin
The U.S. Securities and Exchange Commission (SEC) received a report from Tesla Inc. on Monday.
As Bitcoin.com News revealed last week, the corporation said it converted around 75% of its bitcoin assets into fiat money. The balance sheet of the electric car manufacturer now has $936 million more cash thanks to the BTC conversion.
According to Tesla’s SEC filing for the second quarter,
“We recorded $170 million of impairment losses resulting from changes to the carrying value of our bitcoin and gains of $64 million on certain conversions of bitcoin into fiat currency by us. “
In Q1 2021, Tesla made a $1.5 billion bitcoin acquisition. The corporation sold BTC valued $272 million within the same period. In Q1 2021, the price of bitcoin varied between $32,000 and $59,000.
The electric vehicle manufacturer said in the SEC filing that it gained $128 million in Q1 2021 by exchanging its bitcoin for fiat money. Additionally, in Q2 2021 and the first half of 2021, the corporation experienced impairment losses on bitcoin of $23 million and $50 million, respectively.
Bitcoin Is the Main Digital Asset in Tesla’s Portfolio
Tesla clarified that it bought bitcoin worth $1.5 billion in Q1 2021 in its report with the SEC on Monday. In the first half of this year, it also acquired “an inconsequential quantity” of digital assets.
Although Tesla did not mention the other cryptocurrencies it owns, it has been accepting the meme cryptocurrency dogecoin (DOGE) since January in exchange for some goods.
According to Tesla’s financial sheet, the carrying value of its digital assets was $218 million at the end of the second quarter. The maker of electric vehicles clarified:
“The fair market value of such digital assets held as of June 30, 2022 was $222 million.”
After briefly dropping to $18,784, the price of BTC was circling about $20K on June 30. According to information from Bitcoin.com Markets, BTC is currently trading at $21,869 at the time of writing.
Elon Musk, CEO of Tesla, stated this week during the business’s Q2 earnings call that the company sold the majority of its bitcoins out of worry for “general company liquidity, given Covid shutdowns in China.” Musk emphasized that this shouldn’t be interpreted as a judgment on bitcoin, noting that Tesla hasn’t sold any dogecoin and that “we are very open to growing our bitcoin holdings in the future.”