Tesla reports US$ 64M profit from Bitcoin sale in Q2
Tesla reported a gain of US$ 64 million from the sale of 75% of its bitcoin (BTC) reserves in Q2, 2022. Details of which was in its 10-Q filing submitted to the U.S. Securities and Exchange Commission on Monday.
According to Tesla’s 10-Q filing with the SEC, the electric-vehicle manufacturer also recorded US$ 170 million of impairment losses in the first six months of the year which ‘resulted from changes to the carrying value’ of its BTC holdings.
Tesla initially invested US $1.5 billion to acquire around 43,200 BTC in the first quarter of 2021. During the same quarter, the company sold 10% of its BTC to boost its quarter earnings by US$ 272 million. Following this event, the company did not add to or reduce its crypto reserves until the most recent quarter. Tesla CEO explained this move was taken to boost liquidity and cover the damages caused by COVID-19 lockdowns in China, one of its biggest markets.
Last week, Tesla first disclosed it had converted 75% of its BTC holdings during its quarterly report, explaining that 'the conversions in Q2 added US$ 926M of cash to our balance sheet.'
The company is estimated to be holding about 10,800 BTC in its reserves, or around US$ 236 million at the time of writing, according to BTC tracking website Bitcoin Treasuries.