Tesla, has disclosed that it incurred a $204 million impairment loss on its Bitcoin investments in 2022.
In a report with the US Securities and Exchange Commission (SEC), the company stated that, in addition to the loss, it generated a profit of $64 million on certain Bitcoin conversions, leaving the automaker with a net loss of $140 million.
The automaker invested $1.5 billion in Bitcoin during the first quarter of 2021, indicating that it trusted in the cryptocurrency’s long-term potential.
“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.
Tesla disclosed in July of last year that it had lost $170 million on its Bitcoin investments in the first half of the year.
In the second quarter (Q2) of last year, the company sold 75% of its Bitcoins, adding $936 million in cash to its balance sheet as it dealt with a financial collapse and the crash of crypto.
“In the six month period ended June 30, 2022, we recorded gains of $64 million on certain conversions of Bitcoin into fiat currency by us and impairment losses of $170 million resulting from changes to the carrying value of our Bitcoin,” the electric auto maker stated.
