Tesla records $140M Bitcoin net loss in 2022

According to a filing with the United States Securities and Exchange Commission connected Jan. 31, electrical conveyance shaper Tesla disclosed that it recorded a $204 cardinal gross impairment nonaccomplishment during 2022 connected its Bitcoin (BTC) holdings. Simultaneously, Tesla recorded a summation of $64 cardinal from converting BTC into fiat currency astatine assorted points during the year, resulting successful a nett nonaccomplishment of $140 cardinal from its cryptocurrency trading activities.  

The filing further explained the interaction of volatile crypto prices connected Tesla's bottommost line:

"Digital assets are considered indefinite-lived intangible assets nether applicable accounting rules. Accordingly, immoderate alteration successful their just values beneath our carrying values for specified assets astatine immoderate clip consequent to their acquisition volition necessitate america to admit impairment charges, whereas we whitethorn marque nary upward revisions for immoderate marketplace terms increases until a sale. For immoderate integer assets held present oregon successful the future, these charges whitethorn negatively interaction our profitability successful the periods successful which specified impairments hap adjacent if the wide marketplace values of these assets increase."

Related: Elon Musk lays retired erstwhile Tesla volition statesman accepting Bitcoin payments

In the archetypal 4th of 2021, Tesla invested $1.5 cardinal successful Bitcoin. At the time, its founder, Elon Musk, announced that the electrical conveyance shaper would commencement accepting BTC payments from U.S.-based consumers. 

The argumentation was retracted conscionable months later, arsenic Musk cited the request for "confirmation of tenable (~50%) cleanable vigor usage by [Bitcoin] miners with affirmative aboriginal trend," earlier the institution would judge the means of outgo again. Tesla reportedly sold 75% of its BTC holdings successful the 2nd 4th of 2022.