The electric car company Tesla revealed that the company is holding bitcoin worth $1.3111 billion. They neither purchased nor sold any bitcoin during the 2nd quarter. However, a bitcoin impairment of $23 million was recorded. The current revelation of the bitcoin holdings of Tesla confirms the previous statement of its CEO Elon Musk in which he said that he and his company is holding on to their bitcoin assets.
Tesla’s Bitcoin Holdings in the 2nd Quarter
On Monday, Tesla released its 2nd quarter earning report. The net digital value of the company’s unaudited balance sheet of Q2 2021 shows that as of June 30, the company has digital assets worth $1.3111 billion.
Tesla Didn’t Buy or Sell Bitcoin in the 2nd Quarter
It was also apparent in the report that Tesla neither purchased or sold any bitcoin in the 2nd quarter. The only bitcoin purchase that the company made was in the first quarter when it bought bitcoin worth $1.5 billion, as was shown on the unaudited report released by Tesla. Another fact that came into sight from this unaudited cash report was that Tesla only sold $272 million worth of bitcoin in Q1. Tesla made this sale to prove the liquidity of the cryptocurrency as Tweeted by the company’s CEO Elon Musk on June 13 that Tesla only sold 10% of its bitcoin holdings to prove that it can be liquidated easily without affecting the market. Tesla also told the US Securities and Exchange Commission that the company’s bitcoin asset is worth $2.5 billion.
Bitcoin-Related Impairment of $23 Million
Tesla’s Q2 income report explicitly refers to bitcoin once, under the productivity segment, which features things balancing the organization’s working pay, including bitcoin-related impairment of $23M. The digital resources are at first recorded at cost and are hence remeasured on the united asset report at cost, net of any debilitation misfortunes brought about since obtaining.
“We will play out an investigation each quarter to distinguish impedance. On the off chance that the conveying worth of the computerized resource surpasses the reasonable worth dependent on the most reduced cost cited in the dynamic trades during the period, we will perceive an impedance misfortune equivalent to the distinction in the solidified articulation of tasks,” the organization explained. Tesla’s fiscal reports affirm Elon Musk’s past explanations that Tesla had diamond hands and would not sell its bitcoins. Musk said at a few events that neither he nor Tesla had sold any BTC.
Tesla began tolerating BTC for instalments in March but halted in May. Musk referred to ecological issues as the explanation and said that Tesla would continue tolerating bitcoin when excavators affirm they utilise half clean energy. At the new Bitcoin occasion “B-Word,” Musk uncovered that he possesses three types of digital currencies bitcoin, ether, and dogecoin, while SpaceX claims bitcoin. He also said that he won’t dump bitcoin as of now as he wants to see the cryptocurrency succeed. Moreover, he also revealed that Tesla might resume accepting bitcoin payments for its electric cars.