Tesla made realized gains of $64M from its Bitcoin sale

Tesla’s Q2 2022 earnings call showed that the electric car maker sold most of its Bitcoin holdings for nearly $1 billion. The company netted a hefty profit despite the recent drop in cryptocurrency prices.

Tesla sheds off 75% of its Bitcoin

During the second quarter, Tesla sold the majority of its Bitcoin holdings. Before the sale, Tesla was one of the largest corporate Bitcoin holders, and it had even assured that its purchase would demonstrate Bitcoin’s long-term viability.

The Q2 2022 earnings call showed that during the first half of 2022, the electric car maker made impairment losses of $170 million because of changes to the carrying value. An impairment loss happens after the fair value of the asset held by a company declines below the carrying value of the investment.

The official Form 10-Q filed with the US Securities and Exchange Commission also showed that after the electric car maker sold 75% of its Bitcoin holdings, it made a realized gain of $64 million.

Buy Bitcoin Now

Your capital is at risk.

Punt Crypto Casino Banner

Tesla’s financial results for the second quarter also showed that the company reported per-share earnings of $2.27 and revenues of $16.93 billion. On the other hand, the profits reported during the first quarter were notably down compared to the first quarter. However, the profitability was up compared to the previous year.

Tesla’s profits have been affected by the rising inflation levels and the increased competition for battery cells. As seen on Bitcoin Treasuries, the electric vehicle maker has around 10,800 BTC in its holdings. Tesla’s Bitcoin holdings are currently worth around $237 million.

Tesla’s stand on Bitcoin

Tesla’s CEO Elon Musk explained the reasons why the electric car maker had sold its Bitcoin holdings. He said the company needed cash to sustain its operations in Germany and the US. Moreover, it also needed to expand its cash flow affected by the COVID-19 restrictions in China.

The recent 10-K disclosure filing did not provide any insights into the digital asset strategy adopted by Tesla. However, the company said it would increase or decrease its crypto holdings in the future depending on the business needs and the macro-economic climate.

Musk also said that the sale should not be seen as a verdict on Bitcoin. Tesla’s Bitcoin sale has elicited mixed reactions from the crypto community, with the CEO of Binance, Changpeng Zhao, saying that the sale was a drop in the ocean as up to $100 billion worth of Bitcoin is traded daily.

Read more:

Battle Infinity – New Crypto Presale

Battle Infinity
  • Presale Until October 2022 – 16500 BNB Hard Cap
  • First Fantasy Sports Metaverse Game
  • Play to Earn Utility – IBAT Token
  • Powered By Unreal Engine
  • CoinSniper Verified, Solid Proof Audited
  • Roadmap & Whitepaper at battleinfinity.io

Battle Infinity


Source: https://insidebitcoins.com/news/tesla-made-realized-gains-of-64m-from-its-bitcoin-sale