1 year ago
Tesla’s latest filing with the U.S. Securities and Exchange Commission (SEC) shows that the just marketplace worth of the company’s bitcoin holdings was $191 cardinal astatine the extremity of 2022. In addition, billionaire Elon Musk’s electrical car institution recorded $204 cardinal of impairment losses resulting from changes successful the prices of bitcoin.
Tesla’s Digital Assets and Its Bitcoin’s Fair Value
Elon Musk’s electrical car company, Tesla (Nasdaq: TSLA), filed its yearly study for the twelvemonth ended Dec. 31, 2022, with the U.S. Securities and Exchange Commission (SEC) connected Monday.
The filing shows that the just marketplace worth of Tesla’s BTC holdings was $191 cardinal astatine the extremity of 2022 portion their carrying worth was $184 million, arsenic Bitcoin.com News antecedently reported. “As of December 31, 2022, and 2021, the carrying worth of our integer assets held was $184 cardinal and $1.26 billion, which reflects cumulative impairments of $204 cardinal and $101 million, each period, respectively,” the institution detailed, elaborating:
The just marketplace worth of specified integer assets held arsenic of December 31, 2022 and 2021 was $191 cardinal and $1.99 billion, respectively.
The filing besides notes that during the 2 years ended Dec. 31, 2022, Tesla “purchased and/or received an immaterial magnitude and $1.50 billion, respectively, of integer assets.”
The electrical car institution invested $1.5 cardinal successful bitcoin successful Q1 2021 but sold 75% of its holdings successful Q2 2022. The institution besides accepts the meme cryptocurrency dogecoin (DOGE) for immoderate merchandise, which accounted for an “immaterial amount” of integer assets arsenic stated successful the SEC filing.
Tesla’s $204 Million successful Impairment Losses From Bitcoin
The electrical car institution explained that integer assets are considered “indefinite-lived intangible assets nether applicable accounting rules.” Therefore, “any 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,” Tesla described, adding:
In the twelvemonth ended December 31, 2022, we recorded $204 cardinal of impairment losses resulting from changes to the carrying worth of our bitcoin and gains of $64 cardinal connected definite conversions of bitcoin into fiat currency by us.
Since its BTC acquisition, Tesla lone sold its bitcoin once, which was successful the 2nd 4th of 2022. The institution sold 75% of its bitcoin holdings which added $936 cardinal successful currency to its equilibrium sheet. CEO Elon Musk explained astatine the clip that the institution is “certainly unfastened to expanding our bitcoin holdings successful [the] future,” noting that the merchantability was owed to concerns astir the company’s wide liquidity, “given Covid shutdowns successful China.”
Tesla’s SEC filing besides states:
We whitethorn summation oregon alteration our holdings of integer assets astatine immoderate clip based connected the needs of the concern and our presumption of marketplace and biology conditions.
Do you deliberation Tesla should bargain much bitcoin? Let america cognize successful the comments conception below.
Kevin Helms
A pupil of Austrian Economics, Kevin recovered Bitcoin successful 2011 and has been an evangelist ever since. His interests prevarication successful Bitcoin security, open-source systems, web effects and the intersection betwixt economics and cryptography.
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