Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
In a week that already saw the crypto market rattled by false reports of a Bitcoin spot ETF launch, Elon Musk and Tesla are gearing up to deliver yet another shockwave. Today, the electric car giant is set to unveil its Bitcoin holdings in its earnings report for the third quarter of 2023, an event with profound implications for the world of digital assets.
Tesla's Bitcoin adventure began with a bang two years ago when the company invested a billion and a half in dollars in the cryptocurrency and announced plans to accept Bitcoin as payment for its vehicles, a move that significantly boosted Bitcoin's market value at the time.
Fast forward to the second quarter of 2023, Tesla disclosed that it had neither bought nor sold Bitcoin, maintaining a consistent digital asset balance of $184 million.
Accounting issues
Importantly, the price of Bitcoin fell from about $30,600 to $28,500 during this time. Current accounting rules do not allow Tesla to recognize a profit as long as the assets remain unsold. However, in the event of a sharp drop in Bitcoin prices, accounting rules would allow the valuation of these assets to be reduced.
It is noteworthy that Tesla's last Bitcoin transaction took place in the second quarter of the previous year, when the company offloaded more than 30,000 BTC, equating to roughly 75% of its holdings, for a staggering $936 million.
As the crypto community eagerly awaits Tesla's latest Bitcoin holdings update, the entire industry braces itself for another major shift, one that could influence not only Bitcoin's valuation but also the sentiment surrounding digital assets in general.
Yuri Molchan
Vladislav Sopov
