Tesla holds $1.9 billion in Bitcoin

TL: DR Breakdown

• Tesla holds $1.9 billion worth of Bitcoin (BTC)
• The company however recorded Bitcoin losses totaling at $101 million

According to new reports, Bitcoin is still part of Tesla’s crypto portfolio. Elon Musk’s electric vehicle and clean energy company, Tesla, is one of the biggest institutional investors. Having invested $1.5 billion in Bitcoin in the first quarter of 2021, Tesla’s latest financial disclosure reveals that the Company’s holdings were worth $1.9 billion as of the end of the year. Tesla also reported an impairment loss of $101 million on its Bitcoin investment.

Tesla’s Bitcoin holdings remains intact and is worth more than it invested

Recently, Tesla filed its financial report for Q4 of 2021 with the SEC. One key insight of the electric vehicle maker’s financial statement was that it still entertained the acquisition and holding of digital assets. As its latest financials show, it has continued to hold on to the investment. The Company reports that its investment in green is currently worth almost $2 billion. 

“In the first quarter of 2021, we invested an aggregate $1.50 billion in Bitcoin. The fair market value of our bitcoin holdings as of December 31, 2021, was $1.99 billion,” the filing read. 

The filing adds that the Company suffered an impairment loss of $101 million resulting from changes in the carrying value of the holdings. And also recorded gains of $128 million from its asset sale back in Q1 of 2021. 

Tesla and others are bringing institutional investment to Bitcoin

While Tesla reversed its decision to accept the popular cryptocurrency as payment for its vehicles last year, the Company still has long-term plans for the asset. Tesla’s CEO, Elon Musk, maintains that Tesla will resume accepting the leading cryptocurrency as payment when the network can show that it is powered by 50% green energy. On the other hand, Dogecoin had made it into the EV company as a medium of payment for merchandise earlier this year. Per previous reports, Tesla is also being used to mine other cryptocurrencies.

The filing reiterated this stance as Tesla’s long-term play on the benchmark cryptocurrency and other digital assets. “We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash,” the filing told investors.

Similarly, MicroStrategy and Block are other institutional investors who hold long-term views on cryptocurrency. MicroStrategy has been actively increasing its BTC holding, recently adding another $25 million worth to bring its total holding to 125,051 Bitcoins.