Tesla reveals $222 million worth of Bitcoin holdings

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2022-07-27 13:38:40

After selling 75% of its Bitcoin reserves, the remaining amount of tokens the company is holding is worth $222 million.

Tesla said it had made a real profit of up to $ 64 million from the sale of Bitcoin to supplement the company’s budget. According to the second-quarter report filed with the U.S. Securities and Exchange Commission (SEC) on Monday, the company explained that it has converted about 75% of its Bitcoin holdings into cash. Jobs added $936 million in cash to the balance sheet of the world’s leading electric car maker.

Tesla informed the SEC that in Q2 it recorded $170 million in impairment losses due to Bitcoin’s price fluctuations. However, the company still made a profit of $64 million from the Bitcoin-to-cash conversion transaction.

Tesla originally purchased $1.5 billion in Bitcoin in Q1 of 2021. In the same quarter, the company sold $272 million worth of BTC. Bitcoin price fluctuated between $32k and $59k in Q1 2021.

Tesla CEO Elon Musk has a special relationship with the crypto market

The electric car company stated in its filing with the SEC that it received a profit of $128 million from converting BTC into fiat currency in the first quarter of 2021. In addition, Tesla incurred a loss of 23. million dollars and 50 million dollars due to Bitcoin investments in Q2 2021 and first half of 2021 respectively.

See also: The special relationship of Dogecoin and Tesla CEO, Elon Musk

Currently Tesla’s digital asset block is mainly Bitcoin. In a filing with the SEC on Monday, Tesla clarified that it continued to accumulate a large amount of $1.5 billion worth of Bitcoin in Q1 2021. Additionally, it received “a substantial amount of assets.” digital immaterial” in the first half of this year.

Although Tesla did not name other crypto assets it holds, it is safe to assume that the company holds a significant amount of Dogecoin. The good relationship between CEO Elon Musk and the community that supports this memecoin dates back several years. Recently, Tesla has also accepted the dogecoin (DOGE) meme for a number of goods since the beginning of the year.

Tesla CEO Elon Musk said during the company’s Q2 earnings call last week that the company sold most of its BTC due to concerns “about the company’s overall liquidity and Due to the Covid situation in China, production activities stopped.” Musk also noted that Tesla did not sell any Dogecoin tokens and emphasized: “We are certainly open to increasing our Bitcoin holdings in the future, so this should not be taken as some number. judgment on Bitcoin”.

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