Tesla Lost $140 Million on Elon Musk’s Bitcoin Bet Last Year

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Tesla’s Big, Bold $1.5 BillionBitcoin “dolbet”long-term potential‘ is starting to look more and more like a dud. At the request of CEO Elon Musk, the company purchased In February, $1.5 billion worth of cryptocurrencies were issued. now, according to A new filling with the SEC saw the company post a $140 million bitcoin loss in 2022, down nearly 10%, it said.Even the world’s most valuable auto companies can’t seem to escape the impact of last year’s severe hardships. crypto winter.

In total, Tesla says it actually recorded $204 million in “impairment losses” on Bitcoin last year. However, I was able to earn around $64 million by converting some of my cryptocurrencies into fiat currency.Them Impairment chargein this context, could refer to the dramatic loss of value associated with Tesla’s cryptocurrency holdings. traded The day Tesla announced the investment, it was over $45,000 per coin.Almost two years later, on February 1, 2023, Bitcoin traded Only $23,148. Overall, a 10% loss might not be too bad.

“During the year ended December 31, 2022, the Company recognized an impairment charge of $204 million attributable to changes in the carrying value of Bitcoin and a loss of $64 million for certain conversions of Bitcoin to fiat currency by the Company. We recorded a dollar gain,” Tesla said in the filing.

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These lackluster numbers dampen what was once a tsunami of Bitcoin hype emanating from Tesla, and more importantly, its CEO.Musk, months after revealing Tesla’s first cryptocurrency investment announced His company will accept Bitcoin as payment for vehicles.At the time, Musk told his customers he was interested in securing Tesla. in crypto “bitcoins paid to Tesla are held as bitcoin” and is not converted to fiat currency. It’s unclear if Tesla’s recently converted bitcoin included what its customers paid for. Tesla has finally pulled back from accepting Bitcoin after critics accused the electric car maker of being complicit in its notoriously energy-intensive world. Cryptocurrency mining business.

“We believe that cryptocurrencies are a good idea on many levels and have a promising future, but this does not come at a great environmental cost,” Musk said. I have written on Twitter.

Following its second-quarter earnings report last year, Tesla said: converted Converting 75% of its bitcoin holdings into fiat currency, the company ultimately earned an additional $936 million in cash.A rapid exit from that investment happened after Bitcoin reportedly It has lost more than half its value in the last 4 months. Prices have been rocking up and down since then, but the overall cryptocurrency situation has arguably gotten worse. epic implosion Virtual currency trading platform FTX and arrest Founder Sam Bankman-Freed. The ripple effect of the blow is Genesis When block phi to file for bankruptcy;

the mask is repeated claimed It’s “ridiculous” to believe that other public statements in his tweet could have a meaningful impact on the market, but his own bitcoin story you seem to be talking about something elseIn 2021, when Tesla announced a massive $1.5 billion investment, the price of Bitcoin skyrocketed to all-time highs. The price of bitcoin suddenly plummeted by 15% shortly after Musk blocked Tesla from accepting bitcoin payments. In other cases, Musk’s seemingly harmless tweets, like this silly meme The one depicting the billionaire’s “dissolution” took place before the Bitcoin price fell by about 5%.

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