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Elon Musk's Bitcoin Bet Cost Tesla $23 Million

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Mon, 26/07/2021 - 20:27
Elon Musk's Bitcoin Bet Cost Tesla $23 Million
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Bitcoin's massive correction in Q2 made Tesla report a $23 million impairment loss on Monday. 

As previously explained by CNBC's Katy Rooney, the company was expected to book the loss due to accounting rules:   

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Tesla holds crypto as an ‘intangible asset,’ and because of accounting rules, when Bitcoin’s value drops below a certain amount, companies have to mark that down in their financial statements.  

However, she points out that the impairment is not as high as some analysts expected. 

The e-car maker made a huge splash in the crypto market by investing $1.5 billion in early 2021. 

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In April, it sold $101 million worth of Bitcoin in order to test the cryptocurrency's liquidity. 

Yet, Tesla hasn't sold any of its cryptocurrency holdings. It currently has $1.3 billion worth of Bitcoin on its balance sheet.   

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