Tesla lost $101 million on Bitcoin Holdings in 2021

Tesla stated that it will invest $1.5 billion in bitcoin in the first quarter of 2021.

In 2021, Tesla recorded around $101 million in impairment losses due to changes in the value of their bitcoin holdings.

Elon Musk’s electric vehicle company disclosed these losses in a filing with the Securities and Exchange Commission (SEC) describing how its digital asset holdings may affect its profitability.

“In the fiscal year ended December 31, 2021, we recorded approximately $101 million in impairment losses due to changes in the carrying value of our bitcoin and gains of $128 million on certain bitcoin sales by us,” according to the filing.

Tesla stated that it will invest $1.5 billion in bitcoin in the first quarter of 2021. As of the end of 2021, the market value of its bitcoin holdings was $1.99 billion.

A year ago, the company announced that it had purchased $1.5 billion in bitcoin and had begun accepting it as payment. Elon Musk, CEO of Tesla, retracted this announcement in May due to concerns about the environmental impact of bitcoin mining.

Musk later stated that the company would accept the cryptocurrency once it was confirmed that 50% of mining was done with clean energy.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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