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.
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.