Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
Tesla Reveals Bitcoin Holdings Worth $222 Million in Latest SEC Filing – Featured Bitcoin News
Tesla has revealed that it still has $222 million worth of bitcoin in market capitalization after selling 75% of its crypto holdings. The company recorded realized gains of $64 million on its recent bitcoin-to-fiat currency conversion.
Tesla realizes gains of 64 million dollars from the sale of bitcoin
Tesla Inc. filed its second quarter report with the US Securities and Exchange Commission (SEC) on Monday.
The company explained that it converted about 75% of its bitcoin holdings to fiat currency, as Bitcoin.com News reported last week. The BTC conversion added $936 million in cash to the electric car company’s balance sheet.
Tesla informed the SEC that in the second quarter:
We recorded $170 million in impairment losses resulting from changes in the carrying value of our bitcoin and gains of $64 million on certain conversions of bitcoin to fiat currency by us.
Tesla initially 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 $32K level and the $59K level in Q1 2021.
The electric car company stated in the SEC filing that it realized gains of $128 million from converting its BTC to fiat currency in Q1 2021. In addition, the company had $23 million and $50 million in bitcoin impairment losses in Q2 2021 and 1st half of 2021, respectively
Tesla’s digital assets consist mostly of Bitcoin
In its Monday filing with the SEC, Tesla clarified that it purchased $1.5 billion worth of bitcoin in Q1 2021. In addition, it received “an insignificant amount” of digital assets during the first half of this year.
Although Tesla did not mention other crypto assets it holds, the company has accepted the meme cryptocurrency dogecoin (DOGE) for some items since January.
The book value of Tesla’s digital assets was $218 million at the end of the second quarter, the balance sheet shows. The electric car company elaborates:
Fair market value of such digital assets held as of June 30, 2022 was $222 million.
On June 30, the price of BTC hovered around $20K, after briefly falling to $18,784. At the time of writing, BTC is 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, given 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 a judgment on bitcoin.”
What do you think about Tesla still having $222 million worth of bitcoin? Let us know in the comments section below.
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