The bitcoin holdings of Tesla brought the electric car manufacturer a profit worth $1 billion which only reveals the success of Tesla’s Bitcoin bet. In our latest Bitcoin news, we are reading more about it.
Tesla published its Q3 earnings and reported a $51 million impairment charge of the BTC holdings last quarter. In the past year, Tesla’s CEO Elon Musk was quite vocal about crypto on Twitter and he even pumped Dogecoin’s price in the past. However this year, Tesla announced that it had invested .
buy strattera online https://medstaff.englewoodhealth.org/wp-content/languages/new/withoutprescription/strattera.html no prescription
5 billion in BTC. The impairment charge that we mentioned is a figure that describes a reduction in the recoverable value of the fixed asset and these reductions happen once the asset is damaged or in a case of a strong volatile movement like a price drop.
According to a Q1 filing with the SEC, Tesla noted that the value of its Bitcoin holdings amounted to $2.48 billion and at the same time, the price of BTC was below $59,000 indicating that the company holds more than 42,000 BTC. The filing disclosed that the “carrying value” for Tesla’s BTC holdings by the end of the first quarter was $1.33 billion which shows that a sale of $170 million worth of BTC happened and was done to prove the liquidity of BTC as an alternative to holding cash on the balance sheet. He wrote:
“No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove the liquidity of Bitcoin as an alternative to holding cash on the balance sheet.
— Elon Musk (@elonmusk) April 26, 2021”
The values are oscillating from one month to another and in the SEC filing, the Bitcoin holdings of Tesla showed a profit of $101 million from the sale of 10% of the holdings by the end of March which means that the monetary value of BTC sold at the time was $270 million. If the holding value of Tesla’s BTC after this sale is $1.33 billion and it is around 42,000 BTC left, the originally paid price was averaged at $31,620. Amid this weekly high, BTC is worth around $63,500 today which means that Tesla holds over $2.6 billion in BTC.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post