Tesla Reported $64 Million Profits From Its Bitcoin Sale

Tesla reported $64 million in profits from its Bitcoin sale after selling 75% of its stash in the second quarter as we reported in our latest Bitcoin news.

The company’s overall profitability was impacted due to heavy inflation and the competition for the battery cells. The decision to offload more of its BTC treasuries netted the company huge profits in the second quarter as the crypto prices drop in the bear market. In the first six months of 2022, Tesla recorded $170 million of impairment losses which resulted from changes to the carrying value of the BTC holdings as per the official Form 10-Q with the United States Securities and Exchange Commission. After selling 75% of the BTC stash for dollars in the second quarter which netted the company gains of $64 million.

Tesla reported $64 million in profits from the BTC sale but the impairment loss occurs when the fair value of the asset held by a company falls below the carrying value of the investment. Tesla recorded per-share earnings of $2.27 in the second quarter on revenue of $16.93 billion and the profitability was down compared to the first quarter and was up over the levels of a year ago.
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The company’s profitability was impacted by the rising inflation and growing competition for battery cells. The vehicle maker has 10,800 BTC on its books and at a current price of $22,000 per BTC and the digital asset, holdings are worth about $237 million.

The 10k disclosure didn’t show more insights about the Tesla digital asset strategy but the company didn’t state it could increase or decrease the holdings over time:

“As with any investment and consistent with how we manage fiat-based cash and cash equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of market and environmental conditions.”

As recently reported, After starting the markets a week ago by announcing that it sold 75% of its BTC holdings, it seems that Tesla still holds $222 million of digital assets in its books. Despite the panic test over the past week announced that it sold 75% of BTC and reproted that $222 million worth of digital assets remain on the balance sheet as of the end of June. The new details were in the quarterly report of the company which is filed with the US SEC.