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Tesla suffers a $141 million loss on a Bitcoin bet
If you've been hurt by the recent volatility in Bitcoin, you're not alone. Tesla, led by the world's richest person, Elon Musk, has also been impacted by the crypto craze.
In its annual filing to the Securities and Exchange Commission, the electric vehicle (EV) manufacturer declared a US$101 million impairment loss due to its investment in Bitcoin.
The loss is mainly an accounting issue, and it has no influence on Tesla's overall financial health.
According to the SEC filing, the corporation still holds around US$2 billion in Bitcoin on its balance sheet.
And Tesla did claim a US$128 million gain on its bitcoin investment following the sale of some of its holdings in March 2021.
Shares of Tesla were up 2 per cent Monday morning.
However, the stock has dropped more than 10% this year as investors shift away from technology and into more value-oriented industries such as oil.
Bitcoin prices surged Monday as well, gaining nearly 4 per cent to roughly US$43,000.
But the price of one bitcoin has plummeted more than 7 per cent so far this year and is down approximately 40 per cent from its all-time high of just under US$69,000 in November.
In early 2021, Tesla invested US$1.5 billion in Bitcoin.
Mr Musk has repeatedly tweeted about his support for the top crypto as well as for other lesser, meme currencies such as Dogecoin.
The company also briefly took Bitcoin as payment for its electric cars last year, but reversed course in May following opposition from critics over Bitcoin mining, which needs enormous energy and is not ideal for the environment.
Nonetheless, Tesla remains positive on Bitcoin and other cryptocurrencies.
"We believe in the long-term potential of digital assets as both an investment and a liquid alternative to cash," Tesla stated in the SEC filing.
"As with any investment, and in accordance with how we manage fiat-based cash and currency equivalent accounts."
"Based on the demands of the business and our assessment of market and environmental conditions, we may grow or decrease our holdings of digital assets at any time."
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By Crypto PiratesIf you've been hurt by the recent volatility in Bitcoin, you're not alone. Tesla, led by the world's richest person, Elon Musk, has also been impacted by the crypto craze.
In its annual filing to the Securities and Exchange Commission, the electric vehicle (EV) manufacturer declared a US$101 million impairment loss due to its investment in Bitcoin.
The loss is mainly an accounting issue, and it has no influence on Tesla's overall financial health.
According to the SEC filing, the corporation still holds around US$2 billion in Bitcoin on its balance sheet.
And Tesla did claim a US$128 million gain on its bitcoin investment following the sale of some of its holdings in March 2021.
Shares of Tesla were up 2 per cent Monday morning.
However, the stock has dropped more than 10% this year as investors shift away from technology and into more value-oriented industries such as oil.
Bitcoin prices surged Monday as well, gaining nearly 4 per cent to roughly US$43,000.
But the price of one bitcoin has plummeted more than 7 per cent so far this year and is down approximately 40 per cent from its all-time high of just under US$69,000 in November.
In early 2021, Tesla invested US$1.5 billion in Bitcoin.
Mr Musk has repeatedly tweeted about his support for the top crypto as well as for other lesser, meme currencies such as Dogecoin.
The company also briefly took Bitcoin as payment for its electric cars last year, but reversed course in May following opposition from critics over Bitcoin mining, which needs enormous energy and is not ideal for the environment.
Nonetheless, Tesla remains positive on Bitcoin and other cryptocurrencies.
"We believe in the long-term potential of digital assets as both an investment and a liquid alternative to cash," Tesla stated in the SEC filing.
"As with any investment, and in accordance with how we manage fiat-based cash and currency equivalent accounts."
"Based on the demands of the business and our assessment of market and environmental conditions, we may grow or decrease our holdings of digital assets at any time."
Support us!