As it is known, Tesla’s buying and selling of Bitcoin is important for the crypto market. While the technology giant’s purchase of the popular cryptocurrency may push the BTC price up, selling it on the contrary may cause the Bitcoin price to show a downward trend. The current trading situation will be determined by Tesla reports.
Does Tesla have Bitcoin?
Electric car maker Tesla (TSLA) did not buy or sell any Bitcoin for the fourth quarter and the second quarter in a row, the company reported in its latest earnings report. At the end of the quarter, the value of their digital assets fell to $184 million from $218 million at the end of the third quarter due to impairment fees from the drop in Bitcoin price.
At the end of the third quarter, the BTC price was just under $20,000, while at the end of the fourth quarter it was around $16,500.
Tesla also made no changes to its Bitcoin holdings in the third quarter, but in the second quarter the company surprised some investors by selling $936 million worth of BTC, or about 75 percent of its total assets, to raise cash due to uncertainty.
However, CEO Elon Musk said at the time that the company was open to increasing Bitcoin risk in the future and that the sale “should not be taken as a decision about Bitcoin.”
How to view Tesla reports?
Tesla reports are published at the end of each quarter on “https://ir.tesla.com/#quarterly-disclosure”. It will be clear whether the company, which will publish its last quarter reports on July 19, 2023, holds Bitcoin. If BTC has been bought or sold, this will most likely be reflected in the current price of Bitcoin.
Crypto assets, on the other hand, are currently not covered by accounting rules, meaning that companies record them as “intangible assets” and write off their value if the price drops below the purchase price. However, this may soon change.
Last October, the Financial Accounting Standards Board (FASB) discussed whether companies could use fair value accounting when reporting digital assets like Bitcoin. A change in fair value accounting means companies are reporting gains and losses associated with cryptos similar to traditional financial assets, a move touted as a factor that could increase institutional adoption of digital assets.
For companies holding crypto, this subtle change in accounting rules could have a huge impact on the disclosure of their digital asset holdings. If Bitcoin continues to recover, or even sustain its recent gains, Tesla’s balance sheet will look much better to crypto bulls.
