Tesla has revealed that it still has $222 million worth of bitcoin in market value, even after selling 75% of its crypto holdings. The company recently reported a real profit of $64 million on converting bitcoin to fiat currency.
Tesla Gains $64 Million From Selling Bitcoin
Tesla Inc. on Monday filed its second quarter report with the US Securities and Exchange Commission (SEC).
As reported by Bitcoin.com News last week, the company reported that it converted roughly 75% of its bitcoin holdings into fiat currency. The BTC conversion added $936 million in cash to the electric car company’s balance sheet.
Tesla told the SEC that in the second quarter:
We recorded a loss of $170 million as a result of changes in the carrying value of our bitcoins and a $64 million gain we made on certain conversions of bitcoins into fiat currency.
Tesla originally bought $1.5 billion worth of bitcoin in Q1 2021. In the same quarter, the company sold $272 million worth of BTC. The price of bitcoin fluctuated between the level of $32K and the level of $59K in the first quarter of 2021.
The electric car company said in an SEC filing that it made a profit of $128 million in Q1 2021 from converting its BTC to fiat currency. In addition, the company had a loss of $23 million and $50 million on bitcoin in Q2 2021 and 1H 2021. respectively.
Tesla’s digital assets consist mostly of bitcoin
In its filing with the SEC on Monday, Tesla clarified that it bought $1.5 billion worth of bitcoin in Q1 2021. In addition, it received “an immaterial amount” of digital assets during the first half of the year.
Although Tesla did not name other crypto assets it holds, the company has been accepting the meme cryptocurrency Dogecoin (DOGE) for some merchandise since January.
Tesla’s digital assets had a carrying value of $218 million as of the end of the second quarter, its balance sheet showed. The electric car company elaborated:
The fair market value of such digital assets held as of June 30, 2022 was $222 million.
On June 30th, the price of BTC was hovering around $20K, briefly dropping to $18,784. At the time of writing, BTC was trading at $21,869, based on data from Bitcoin.com Markets.
Tesla CEO Elon Musk said during the company’s second-quarter earnings call last week that the company sold most of its BTC due to “concerns about overall liquidity for the company in view of the COVID shutdown in China”. Noting that Tesla has not sold any Dogecoin, Musk stressed: “We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as some judgment on bitcoin.”
Why do you think Tesla still has $222 million worth of bitcoin? Let us know in the comments section below.
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