In a recent 10-K filing, which is used to report a public company’s financial performance, Tesla revealed a $101 million loss in Bitcoin (BTC) investment. The electric vehicle company invested $1.5 billion in the first quarter of 2021, the report says.
Tesla noted in a filing with the US Securities and Exchanges Commission (SEC) that Bitcoin’s price fell below the price of the company’s purchase price, as the whole crypto market plunged. Furthermore, Elon Musk’s company had $128 million gains in Bitcoin for selling certain merchandise.
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“We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash. As with any investment and consistent with how we manage fiat-based cash and cash equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of the market and environmental conditions,” the filing said.
Not the first impairment loss
In July, Tesla reported a $23 million impairment in the second quarter of 2021. According to CNBC, the initial $1.5 billion investment in Feb last year was “more than its entire quarterly research and development budget” and soon grew to $2.48 billion with the rise of Bitcoin price.
Moreover, the company reported a $2 billion operating income which came with $51 million impairment losses in the third quarter last year. It was Tesla’s “best ever” result to date.
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