Musk’s Tesla Takes $200M Hit To Bitcoin Holdings In 2022
Electric car manufacturer Tesla TSLA lost over $140 million in 2022 after making a bet on Bitcoin BTC/USD.
What Happened: According to a Monday filing with the U.S. Securities and Exchange Commission, the Elon Musk-led company gained $64 million in 2022 by converting Bitcoin, but still incurred an impairment charge of $204 million, resulting in a total loss of $140 million.
“In the year ended Dec. 31, 2022, we recorded $204 million of impairment losses resulting from changes to the carrying value of our Bitcoin and gains of $64 million on certain conversions of Bitcoin into fiat currency by us,” the electric car maker said in the filing.
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The annual SEC disclosure comes one week after Tesla’s quarterly earnings report, which indicated that no Bitcoin transactions had taken place despite the company holding over $1.5 billion in the apex cryptocurrency.
In an SEC filing for 2021, Tesla reported a $101 million impairment loss on digital assets and $128 million gained after selling Bitcoin.
“As with any investment and consistent with how we manage fiat-based cash and cash-equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and our view of market and environmental conditions,” the company added.
Price Action: At the time of writing, BTC was trading at $23,105 up 1% in the last 24 hours, according to Benzinga Pro.
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