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Tesla’s Bitcoin Bet Goes Terribly Wrong

Mon, 10/24/2022 - 17:41
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Alex Dovbnya
Tesla has taken a massive impairment loss on its Bitcoin holdings, according to a recent SEC filing
Tesla’s Bitcoin Bet Goes Terribly Wrong
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E-car manufacturer Tesla has reported a $170 million impairment loss on its Bitcoin bet in its recent quarterly 10-Q filing with the U.S. Securities and Exchange Commission. 

According to accounting rules, Bitcoin is considered to be a collectible. This means that cryptocurrency investments are generally held at a cost. Companies are required to recognize impairment charges if the fair value of the cryptocurrency falls below its carrying value.

Elon Musk Clarifies His Stance on Bitcoin After Tesla’s U-Turn

The manufacturer of electric cars acquired an aggregate $1.5 billion worth of Bitcoin in February 2021. In April, Tesla announced that it had sold a portion of its holdings in order to test the cryptocurrency’s liquidity. In the second quarter of 2021, the company recorded a $23 million impairment loss due to declining cryptocurrency prices. 

In early February, Tesla said that it had recorded an impairment loss of $101 million due to the changing value of Bitcoin in 2021. The largest cryptocurrency peaked at roughly $69,000 last November, but its price started falling precipitously shortly after this.   

Tesla announced that it had sold most of its Bitcoin holdings in late July, citing macroeconomic concerns.  

As reported by U.Today, Tesla did not buy or sell any Bitcoin holdings in the third quarter. The e-car company continues to hold roughly $218 million. 

The Tesla (TSLA) stock is down 37% over the past six months. The stock recently took a fresh beating due to a significant revenue miss. 

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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