Elon Musk’s electric car startup sold 75% of its BTC in the second quarter. Both inflation and the battery cell market’s rivalry affected the company’s overall profitability.
Even as cryptocurrency prices fell into a bear market in the 2nd period, Tesla’s choice to sell most of its Bitcoin (BTC) assets resulted in the business making a profit.
According to an authorized Form 10-Q statement only with the United States Securities and Exchange Commission or SEC, Tesla recognized $170 million in impairment losses “derived from changes to the carrying value” of its Bitcoin holdings in the first half of 2022. The corporation earned a method of obtaining $64 million after trading 75% of its BTC stock for cash in the second quarter.
Tesla Confirmed $64M Profit From Their BTC Sales:
An impairment loss in finance happens when the market value of assets held by a corporation decreases below the investment’s carrying value.
With second-quarter revenues of $16.93 billion, Tesla earned $2.27 per share. Even though it was lower than it had been in the first quarter, profitability was higher than it had been a year earlier. However, escalating inflation and intensifying competition for lithium batteries influenced the company’s profitability.
10,800 BTC are still held by the manufacturer of electric vehicles, according to Bitcoin Treasuries. Tesla’s technology platform holdings are currently valued at about $22,000 BTC, or about $237 million.
There were no fresh revelations regarding Tesla’s digital asset strategy in the 10-K report. But the business did say that it might change its holdings over time. We may raise or reduce our holdings of digital assets at any moment based on the needs of the business and our assessment of the market and environmental conditions, similar to how you manage fiat-based money and cash equivalent accounts.