• Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Cryptocurrency Hackers
  • Ripple
  • Litecoin
  • Contact Us
Newsletter
Crypto Hoarding
  • Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Cryptocurrency Hackers
  • Ripple
  • Litecoin
  • Contact Us
No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Cryptocurrency Hackers
  • Ripple
  • Litecoin
  • Contact Us
No Result
View All Result
Crypto Hoarding
No Result
View All Result
Home Bitcoin

Tesla’s Bitcoin Investment Fell $1 Billion Last Quarter Amid Crypto Market Crash – Forbes

Admin by Admin
July 27, 2021
in Bitcoin
0
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Topline

One day after posting blowout second-quarter earnings, electric carmaker Tesla revealed in a public filing Tuesday that the value of its bitcoin holdings plummeted more than $1 billion last quarter from $2.5 billion at the end of March as the nascent crypto market reeled from a roughly 40% crash, wiping out virtually all the gains Tesla made on its initial $1.5 billion investment but resulting in only modest losses so far. 

The electric car company headed up by billionaire Elon Musk bought $1.5 billion in bitcoin earlier … [+] this year.

Getty Images

Key Facts

In a Tuesday filing, Tesla revealed that its stake in cryptocurrencies was worth nearly $1.5 billion, down about $1 billion from $2.5 billion on March 31. 

The company disclosed no cryptocurrency sales in the second quarter, confirming comments Musk made in May after speculation that Tesla sold more bitcoin led prices to plunge 20% over four days.

The firm also reported a $23 million impairment loss, which is subtracted from overall profits in the quarter, as a result of its bitcoin holdings, reflecting the change in bitcoin’s value from the time of Tesla‘s initial investment.

The carmaker hasn’t disclosed an exact bitcoin purchase date or or how much it was bought for—only that it happened in the first quarter before February 8, when bitcoin prices ranged from about $30,000 to $38,000.

Bitcoin prices, currently at roughly $38,455, have moved up about 9% since the end of last quarter, meaning Tesla’s holdings are likely worth approximately $1.6 billion Tuesday, assuming the firm hasn’t bought or sold any bitcoin in the third quarter.

Shares of Tesla ticked up 1.5% in premarket hours following an after-close earnings report that shattered Wall Street expectations and disclosed Tesla’s eighth-straight quarterly profit—a record $1.1 billion, up tenfold from $104 million a year ago.

Tangent

Accounting rules require corporations to treat bitcoin as an intangible asset, meaning they must write down the value if the price declines, but can’t write up the value if the price appreciates, Jerry Klein, the managing partner of $9 billion advisory Treasury Partners, told Forbes by email. “Corporate investors get none of the sweets, but all of the indigestion by investing in bitcoin,” he says. 

Related articles

Market Wrap: Bitcoin’s Price Retraces Again, Breaks Below Trendline – CoinDesk

August 16, 2022

Crypto Twitter Sees ‘Bearish Wedge’ Pattern in Bitcoin’s Price Recovery – CoinDesk

August 16, 2022

Key Background

Bitcoin staged a massive rally during the pandemic amid rising inflationary concerns and heightened institutional adoption. Prices nearly doubled in February after Tesla revealed it had invested $1.5 billion in bitcoin and would begin accepting it as payment. Just two months later, however, the car company revealed it sold about 10% of its bitcoin stash, netting more than $100 million from the transaction. And in May, the carmaker reversed course on crypto, with Musk announcing it would no longer accept bitcoin as payment until at least half of its mining is done using renewable energy. Prices crashed more than 50% from an April record high above $63,000, and they’ve struggled to recover ever since in light of an intensifying ban on cryptocurrency mining in several Chinese provinces. As of Tuesday, prices are still down nearly 40% from peak levels.

What To Watch For

Business analytics firm MicroStrategy, which owns more bitcoin than any other corporation in the world, reports earnings Thursday. Last month, the company said it expects to incur a loss of at least $284.5 million in the second quarter as a result of its bitcoin holdings. At the time, it held about 92,079 bitcoins on its balance sheet, worth about $3.6 billion on Tuesday but at one point worth more than $5 billion.

Surprising Fact

Despite at one point crashing more than 50% this year, the price of bitcoin is still up nearly 250% over the past year.

Further Reading

Tesla Profit Streak Rolls On For Eighth Quarter, Powered By Record Net Income (Forbes)

Elon Musk Still A Bitcoin ‘Supporter’: ‘I Own Bitcoin, Tesla Owns Bitcoin, SpaceX Owns Bitcoin’ (Forbes)

Tesla’s Bitcoin Holdings In Reverse (Forbes)

Bitcoin’s Biggest Corporate Backer Expects $285 Million Loss After Crypto Crash—But Wants To Raise $400 Million In Debt To Buy More (Forbes)

Tesla And SpaceX Billionaire Elon Musk Doubles Down On Dogecoin And Ethereum Plan To Beat Bitcoin Amid Crypto Price Bounce (Forbes)

Share76Tweet47

Related Posts

Market Wrap: Bitcoin’s Price Retraces Again, Breaks Below Trendline – CoinDesk

by Admin
August 16, 2022
0

Market Wrap: Bitcoin's Price Retraces Again, Breaks Below Trendline  CoinDeskBitcoin Hits US$24k, Red Flags in Crypto Market: Cryptocurrencies on 16 August  Analytics...

Crypto Twitter Sees ‘Bearish Wedge’ Pattern in Bitcoin’s Price Recovery – CoinDesk

by Admin
August 16, 2022
0

Crypto Twitter Sees 'Bearish Wedge' Pattern in Bitcoin's Price Recovery  CoinDesk

Ether is strong but Bitcoin drops below $24,000 – Fortune

by Admin
August 16, 2022
0

Ether is strong but Bitcoin drops below $24,000  Fortune

Bitcoin Hits US$24k, Red Flags in Crypto Market: Cryptocurrencies on 16 August – Analytics Insight

by Admin
August 16, 2022
0

Bitcoin Hits US$24k, Red Flags in Crypto Market: Cryptocurrencies on 16 August  Analytics Insight

Bitcoin: Let’s Put The Utility Argument To Bed – Seeking Alpha

by Admin
August 15, 2022
0

Bitcoin: Let's Put The Utility Argument To Bed  Seeking Alpha

Load More
  • Trending
  • Comments
  • Latest
Major Changes Coming to XRP Ledger As Ripple-Backed Startup Launches Key Amendment in Beta Testnet – The Daily Hodl

Major Changes Coming to XRP Ledger As Ripple-Backed Startup Launches Key Amendment in Beta Testnet – The Daily Hodl

April 21, 2021

SteveWillDoIt reveals hacker stole his crypto wallet: “I lost a lot of money” – Dexerto

July 26, 2021
Forte’s PTI gets financial transaction licenses for blockchain games – VentureBeat

Forte’s PTI gets financial transaction licenses for blockchain games – VentureBeat

February 11, 2022

Blockchain Use in Supply Chain Leads to Greater Benefits – The National Law Review

August 25, 2021

Market Wrap: Bitcoin’s Price Retraces Again, Breaks Below Trendline – CoinDesk

0

Rivals Ripple and R3 partner up | PaymentsSource – American Banker

0
Ripple seeks shelter in D.C. from Libra’s political storm – American Banker

Ripple seeks shelter in D.C. from Libra’s political storm – American Banker

0

Litecoin Gets Bullish Speculation, at Last, as Upgrade Approaches – Coindesk

0

Market Wrap: Bitcoin’s Price Retraces Again, Breaks Below Trendline – CoinDesk

August 16, 2022

Are Blockchain Bridges Safe? Why Bridges Are Targets of Hacks – CoinDesk

August 16, 2022

Ethereum [ETH] short-term traders can celebrate next week if… – AMBCrypto News

August 16, 2022

Coinbase Will Pause Ethereum Transactions During “The Merge” – Bitcoinist

August 16, 2022
Crypto Hoarding

We bring you the best Premium WordPress Themes that perfect for news, magazine, personal blog, etc. Check our landing page for details.

Categories tes

  • Bitcoin
  • Blockchain
  • Cryptocurrency Hackers
  • Ethereum
  • Litecoin
  • Ripple

Newsletter

[mc4wp_form]

  • Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Cryptocurrency Hackers
  • Ripple
  • Litecoin
  • Contact Us

© 2017 JNews - Crafted with love by Jegtheme.

No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Cryptocurrency Hackers
  • Ripple
  • Litecoin
  • Contact Us

Copyright (c) 2021 - Crypto Hoarding - All Rights Reserved - web design by TechyRack