Tesla data $204M loss from bitcoin in 2022 • TechCrunch

Tesla recorded a $204 million impairment loss in 2022 on its bitcoin holdings, in line with regulatory filings. The loss was offset by $64 million in earnings from bitcoin buying and selling, leaving the automaker with a internet lack of $140 million.

Tesla had invested $1.5 billion in bitcoin through the first quarter of 2021, stating that it believed within the longevity of the cryptocurrency. On the time, the corporate mentioned bitcoin was an awesome place to retailer money and nonetheless entry it instantly, all of the whereas offering a greater return on funding than extra conventional central banks. In actual fact, after its preliminary buy, Tesla promptly trimmed its place by 10%, making the automaker a fast $101 million.

In March 2021, CEO Elon Musk mentioned Tesla would start accepting bitcoin as funds for Tesla automobiles, inflicting the value of the crypto to increase. Just a few weeks later, Musk and Tesla backpedaled on that decision, expressing concern for the quantity of vitality wanted to mine bitcoin. The value of bitcoin then subsequently sank.

Final yr, as the worth of bitcoin started to plunge, Tesla offered 75% of its bitcoin holdings and used the proceeds to purchase conventional forex. The automaker at the moment owns about $184 million price of bitcoin, and could also be holding out for a rebound.

The crypto market has skilled a dramatic drawdown over the past year. Immediately, bitcoin is buying and selling at $23,045.50, which is about 66% under the all-time excessive of $68,789.63. Regardless of dropping over half its worth, some experts say bitcoin has remained resilient and should expertise a comeback, particularly as patrons spooked by the crypto market normally gravitate towards family names and extra mature ecosystems, like bitcoin or ether.

Tesla disbanded its press division and couldn’t be reached for remark.

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