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Bitcoin News - The electric vehicle maker recorded $34 million in impairment charges.
- Tesla’s total cryptocurrency holdings amounted to 10,725 BTC.
In its most recent financial report, published on Wednesday, Tesla said that it had neither acquired nor sold any Bitcoin in the fourth quarter of 2022. However, the electric vehicle maker recorded $34 million in impairment charges as the value of its Bitcoin assets fell to $184 million from $218 million in Q3 2022.
An impairment charge occurs when the fair market value of an asset falls below its carrying amount or its purchase cost. According to Tesla’s quarterly report, the value of the business’s Bitcoin holdings has decreased despite the fact that the number of Bitcoin held by the company has remained the same.
Fifth Largest Publicly Traded Firm to Hold Bitcoin
According to CMC, the price of Bitcoin was slightly under $20,000 at the end of September 2022, and it dropped to around $16,000 by the end of the year. When Tesla announced a $1.5 billion investment in Bitcoin in February 2021, it entered the ranks of enterprises holding the major cryptocurrency, sending the price of BTC to new record highs.
Elon Musk justified the $936 million in digital asset sales that appeared on the company’s balance sheet at the time by citing the unpredictability of Covid lockdowns in China and the necessity to optimize cash flow.
Following the sale, Tesla’s total cryptocurrency holdings amounted to 10,725 BTC. The firm kept the hoard in storage during the second half of 2022, despite the market upheaval. Thus, Tesla is now the fifth-largest publicly traded business to have Bitcoin in its assets. According to data, MicroStrategy, led by Michael Saylor, is still at the top of the list with 132,500 BTC, or more than $3 billion at today’s pricing.
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