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Elon Musk's Bitcoin Bet Cost Tesla $23 Million

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Mon, 07/26/2021 - 20:27
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Alex Dovbnya
Tesla had to book a $23 million Bitcoin impairment loss in Q2
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:   

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. 

Related
IMF Claims Bitcoin Threatens Economic Stability

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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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.