EV News

Tesla is now holding about $2 billion in Bitcoin

Early in 2021, Tesla invested $1.5 billion in Bitcoin.

In a new SEC filing, Tesla (TSLA) updated its Bitcoin holdings, disclosing that company now has $1.99 billion in the cryptocurrency.

Tesla spent $1.5 billion on Bitcoin in early 2021.

Shortly after, the automaker began taking Bitcoin as a form of payment for new vehicles.

Tesla, on the other hand, took a step back with cryptocurrency by deleting the Bitcoin payment option a few days later. The business expressed concern about the Bitcoin network’s energy requirements:

“Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.

This was a concern expressed by many Tesla community members when the business initially disclosed its Bitcoin investment, and many were outraged that the firm hadn’t considered it before.

Tesla stated at the time that they were not selling their Bitcoin holdings and that they intended to resume accepting Bitcoin payments once the network had a higher renewable energy mix.

Elon Musk, Tesla’s CEO, stated last summer that he hopes the company will resume accepting Bitcoin payments if the energy mix for Bitcoin mining improves.

Tesla is holding the cryptocurrency and provided an update in its latest 10K SEC filing, which was released today.

The automaker revealed that it now owns around $2 billion in Bitcoin at current market value, after selling a portion of its investment as a liquidity test:

“During the year ended December 31, 2021, we purchased and received $1.50 billion of bitcoin. During the year ended December 31, 2021, we recorded $101 million of impairment losses on such digital assets. We also realized gains of $128 million in connection with selling a portion of our holdings in March 2021. Such gains are presented net of impairment losses in Restructuring and other in the consolidated statement of operations. As of December 31, 2021, the carrying value of our digital assets held was $1.26 billion, which reflects cumulative impairments of $101 million. The fair market value of such digital assets held as of December 31, 2021 was $1.99 billion.”

During a price rise last year, Tesla was briefly up by almost $1 billion in Bitcoin.

Bitcion, like the rest of the crypto market, has since plummeted, although prices have begun to rise again in recent weeks, with Bitcoin up 15% in the last week alone.