Categories: Crypto News

Tesla Reveals $1.3 Billion Worth of Bitcoin Holdings in Q2, $23 Million BTC Loss – Bitcoin News

Elon Musk’s electric car company Tesla owns $1.311 billion in bitcoin. The company did not buy or sell any bitcoin during the second quarter, but reported a loss of $23 million related to bitcoin. Tesla’s action confirms Musk’s earlier statement that neither he nor Tesla sold its coins.

Tesla’s Q2 Bitcoin Holdings

Elon Musk’s Tesla released its second-quarter earnings report on Monday. The company’s Q2 2021 unaudited balance sheet shows a net digital asset value of $1.311 billion as of June 30.

Tesla’s Q2 unaudited balance sheet shows the company’s net digital assets. Source: Tesla

Tesla neither bought nor sold bitcoin in the second quarter

Tesla did not buy or sell any bitcoin in the second quarter. An unaudited statement of the company’s second quarter cash flow shows that the only cryptocurrency purchases were $1.5 billion in BTC purchases in Q1.

The cash flow statement also shows that Tesla first sold its bitcoin for $272 million. Tesla CEO Elon Musk previously stated that the sale was to prove bitcoin’s liquidity, tweeting on June 13: “Tesla just sold 10% stake to confirm that BTC can be easily traded without a market can be terminated.”

Tesla’s Q2 unaudited cash flow statement shows the company’s buying and selling of bitcoin. Source: Tesla

In April, Tesla disclosed in a filing with the US Securities and Exchange Commission (SEC) that its bitcoin stash was worth $2.5 billion.

$23 million bitcoin loss

Tesla’s second-quarter earnings report once specifically mentioned bitcoin under the “Profitability” section, highlighting items offsetting the company’s operating income, including “$23 million related to bitcoin.” loss”.

Tesla’s Q2 earnings report. Source: Tesla

According to Tesla’s 10-K Form filed with the SEC, the company treats digital assets “as an indefinite intangible asset in accordance with ASC 350, Intangibles-Goodwill, and others,” detailing:

Digital assets are initially recorded at cost and subsequently remeasured on the consolidated balance sheet at cost, excluding any impairment losses that may have occurred since the acquisition.

“We will conduct an analysis each quarter to identify losses. If the carrying value of a digital asset exceeds fair value based on the minimum price quoted on exchanges active during the period, we will calculate a difference equal to the difference in the consolidated statement of operations. Will identify impairment loss,” the company detailed.

Tesla’s financial statements confirm Elon Musk’s previous statements that Tesla had diamond hands and would not sell his bitcoins. Musk has stated on several occasions that neither he nor Tesla has sold any BTC.

Tesla began accepting BTC for payment in March but stopped in May. Musk cited environmental issues as the reason and said that Tesla will resume accepting bitcoin when miners confirm they are using 50% clean energy.

At a recent bitcoin event “B Word,” Musk revealed that he personally owns three cryptocurrencies – Bitcoin, Ether and Dogecoin – while SpaceX owns Bitcoin. “I can pump but I don’t dump… I want to see bitcoin succeed,” he said, adding that “Tesla will most likely start accepting bitcoin.”

What do you think about Tesla’s bitcoin strategy? Let us know in the comments section below.

image credit: Shutterstock, Pixabay, WikiCommons

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