Tesla reveals its Bitcoin holdings and BTC sale profits
The electric car manufacturer Tesla has revealed that it still has roughly $222 million worth of digital assets, after saying last week that it had sold 75% of the bitcoin it held on its balance sheet. The company has made a profit of USD 64 million on the sale.
The new details about Tesla’s latest bitcoin (BTC) sale and remaining holdings came in a filing with US Securities and Exchange Commission (SEC) on Monday.
According to the filing, the sale gave Tesla a total of USD 936 million for the second quarter. The company also recorded a write-down of USD 170 million on its remaining holdings.
As of June 30 this year, the company had digital assets with a “fair market value” of USD 222 million, the documentation states. It did not specify whether all of the digital assets it held are in bitcoin, but it is believed that the vast majority are.
Tesla executives have revealed that the company also has some dogecoin (DOGE), although it never announced that it was buying the meme coin. However, the company accepts DOGE as payment for some of its goods.
The details of the bitcoin sale disclosed in the filing are in line with comments by Tesla CFO Zachary Kirkhorn made during the company’s second-quarter earnings call, when he said Tesla had sold 75% of its bitcoin “for a realized gain.”
During the same call, CEO Elon Musk assured the market that the sale had nothing to do with a loss of confidence in bitcoin, but said it came because the company wanted a stronger cash position. He added that Tesla is “certainly open” to increasing its bitcoin position again in the future.
Tesla initially bought $1.5 billion in bitcoin during the first quarter of 2021. The company then reduced its bitcoin holdings by 10%, making a gain of $272 million. After that, Tesla did not make any changes to its bitcoin holdings until the second quarter of this year, when it sold the aforementioned 75% of its original bitcoin holdings.
The company never disclosed at what price it bought bitcoins, nor at what price they were sold. However, various sources estimated the sales price last quarter at around USD 29,000.
Tesla reiterated in its latest filing that it can increase or decrease its holdings of digital assets “at any time based on the needs of the business and our view of market and environmental conditions.”
The company does not consider bitcoin as a mark-to-market asset, meaning that fluctuations in the bitcoin price only affect earnings when it is bought or sold.
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Learn more:
– Did Tesla make a profit on its Bitcoin investment?
– Elon Musk will not sell Bitcoin, Ethereum, Dogecoins as inflation rises and recession risk increases
– Tesla reports USD 101 million in impairment losses from Bitcoin investments in 2021
– Tesla accepts Dogecoin payments for its goods, DOGE rallies
– The US Fed is ready for a new interest rate increase this week, but how aggressive will it be?
– Bitcoin and Crypto Slide Amid ‘Signs of Exhaustion’, BTC and ETH See Investment Inflow Again
