Tesla reveals loss of $204 mn from Bitcoin investments in 2022

SAN FRANCISCO: Elon Musk-owned Tesla has revealed that the company recorded a $204 million impairment loss in 2022 on its Bitcoin investments.

In a filing with the US Securities and Exchange Commission (SEC), the company said, apart from the loss it recorded, it also made a profit of $64 million on certain conversions of Bitcoin, leaving the automaker with a net loss of $140 million.

During the first quarter of 2021, the automaker invested $1.5 billion in Bitcoin, stating that it believed in the cryptocurrency’s long-term viability.

“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 our view of the market and environmental conditions,” said the company.

In July last year, Tesla revealed it incurred a $170 million loss from its Bitcoin investments in the first six months of the year.

The company sold 75 per cent of its Bitcoins, adding $936 million in cash to its balance sheet in the second quarter (Q2) last year, as it deals with an economic meltdown amid cryptocurrencies falling off the cliff.

“In the six month period ended June 30, 2022, we recorded $170 million of impairment losses resulting from changes to the carrying value of our Bitcoin and gains of $64 million on certain conversions of Bitcoin into fiat currency by us,” the electric car-maker revealed.