Tesla held nearly $2 billion worth of bitcoin at the end of 2021
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Elon Musk is the SpaceX founder, and Tesla CEO.
Michele Tantussi | Reuters
TeslaOn Monday, a filing with the SECAt the end last year, it had $2 billion worth of bitcoin.
A total of $1.5 Billion was invested in bitcoin by the company in 2021. Close to 60% of the cryptocurrency traded higher than $46,000 at the end of 2018, a rise that was almost doubled in 2018. December 31.The price of Bitcoin had fallen to as low as $30,000 during July, amid fears about a Chinese regulatory crackdown. However, the cryptocurrency rallied and reached a record high of $68,000 early in November. Bitcoin traded at just $43,000 Monday morning.
Tesla briefly accepted Bitcoin as a payment method but it was not immediately. stopped in May over environmental concerns.
Tesla doesn’t account for bitcoin as a mark-to-market assetIt only impacts earnings when the currency is bought or sold. The drop in bitcoin’s value should not affect earnings, as Tesla hasn’t sold any of its holdings.
Tesla reported $101 Million in impairment losses for its 2021 bitcoin investment. This was due to the drop in cryptocurrency’s value. filing with the SEC. Tesla also stated that $128 million in gains were realized after it sold a part of its holdings. Tesla made $27 million from crypto transactions in the last year. This was recorded as a negative in restructuring expenses.
— CNBC’s Ryan Browne and MacKenzie Sigalos contributed to this report.
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