The Bitcoin holdings of e-car manufacturer Tesla remained unchanged during the fourth quarter, according to the company's most recent earnings report.
The Elon Musk-helmed company holds a total of 9,720 bitcoins.
At the same time, Tesla recorded $34 million in impairment charges due to the cryptocurrency's declining price. An impairment loss is an accounting term used to describe an entity's estimate of the permanent decline in value of its long-term assets or inventory. It is typically calculated based on the difference between an asset's carrying value and its fair market value at a specified point in time.Tesla's purchase of Bitcoin in early 2021 amazed analysts and fascinated the public alike. The electric-car maker, led by billionaire entrepreneur threw a curveball when it revealed that it had invested $1.5 billion in Bitcoins.
This surprising development brought the company's investment plans into sharper focus, and investors are now trying to discern what Tesla's motives were for acquiring this volatile cryptocurrency. Many viewed it as a savvy move to diversify its portfolio, but some also dismissed it as an unorthodox gamble.
In spite of a lot of optimistic predictions, Tesla's cryptocurrency foray didn't lead to broader cryptocurrency adoption.
As reported by U.Today, the e-car maker ended up selling most of its Bitcoin holdings back in July.