Electronic vehicle giant Tesla’s Bitcoin investments are not doing well.
In its 10-Q filing with the SEC, the company stated that the value of its BTC holdings was reduced by $170 million.
Tesla’s Bitcoin Assets Lose Value
According to US accounting rules, Bitcoin is considered collectible. This means that cryptocurrency investments are usually held at a cost. Companies must accept an impairment fee if the value of crypto assets falls below their fair value.
The company announced that it had purchased $1.5 billion worth of Bitcoin in February 2021. Tesla announced last April that some of its holdings were sold to test the liquidity of the cryptocurrency.
In the second quarter of 2021, the company announced a loss of $ 23 million due to the falling cryptocurrency value.
Tesla said that last February, there was a value of $ 101 million due to the depreciation of Bitcoin. Although the asset hit a new ATH level of $69,000 last November, it then fell into a major crisis.
Tesla announced that it sold a large portion of its Bitcoin holdings in late July, citing macroeconomic concerns.
According to the third quarter balance sheet announced by Tesla, he did not sell the Bitcoins he held and did not buy new Bitcoins.
