Tesla’s large and daring billion and a halfdollar wager on bitcoin’s “long term potential” is starting to look more and more like a failure. The company, pursuant to CEO Elon Musk’s instructions, purchased $1.5 billion worth of crypto in February. Now, in accordance to new filings with SEC, company says it walked away with $140 million in bitcoin losses in 2022, almost 10% less. It seems that even the world’s most valuable automobile company cannot escape the effects of the grueling past year. crypto winter.
In total, Tesla says it actually recorded $204 million in “impairment losses” on bitcoin last year. alongside a modest $64 million he was able to make by converting some of his crypto to fiat currency. Those impairment charges, in this context, is likely referring to the dramatic loss in value associated with Tesla’s cryptocurrency holdings. To put that in perspective, bitcoin traded to more than $45,000 per coin the day Tesla disclosed its investment. On February 1, 2023, almost two years later, bitcoin negotiated at only $23,148. All told, a 10% loss might not be that bad.
“In the year ended December 31, 2022, we recorded $204 million of impairment losses resulting from changes in the book value of our bitcoin and gains of $64 million on certain conversions of bitcoin to fiat currency by us,” Tesla stated. in your presentation.
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