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Editors News - Tesla are still holding onto Bitcoin despite a dramatic reduction in its value.
- TSLA managed to limit the damage by selling 75% of its 42k bitcoins.
Tesla still holding onto Bitcoin despite a dramatic reduction in its value since the fourth quarter of 2021.
At the start of the year, Tesla (TSLA), invested $1.5 billion to purchase over 43,200 bitcoins for around $30,000 per coin. This move was welcomed by cryptocurrency and bitcoin fans, who saw it as a vote of confidence in the young blockchain industry.
The investment paid off when bitcoin’s price hit record highs of $69,044.77 on November 10, 2021. However, since then the cryptocurrency market has experienced a sharp decline in value, losing almost $2 trillion of its all-time high of $3 trillion, and with Bitcoin itself losing two-thirds or 67% of its value – currently trading at around $23,000 according to CoinGecko data firm.
Tesla managed to limit the damage by selling 75% of its 42,000 bitcoins prior to prices dipping below their purchase
Tesla’s BTC Value Dropped to $184M
Tesla has reported a significant drop in the value of their Bitcoin holdings, with the number now standing at $184 million. This comes after the company announced its decision to convert around 75% of its Bitcoin purchases into fiat currency back in May.
As a result, Tesla reported an impairment loss of $170 million from changes to the carrying value of the Bitcoin they held, leading to a net loss of $106 million.
Although prices of Bitcoin remained relatively steady (-0.7%) during Q3 2022, Tesla’s holdings were still valued at $218 million on 30th September. However, as of, this figure has dropped to $184 million given no significant movement in Bitcoin prices throughout the quarter.
Read More:
Tesla Q4 Earnings Report Reveals $34M Loss in Bitcoin Holdings
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