Bitcoin cost Tesla $140 million in 2022

Tesla, Elon Musk’s electric vehicle and storage solutions company, reported before the US Securities and Exchange Commission (SEC). In 2022, the firm suffered a $140 million loss from bitcoin hodling. Rather, the loss was larger – about $204 million, but in the third quarter, Tesla sold part of its bitcoins, gaining $64 million for them.

“For the year ended December 31, 2022, we recorded an impairment loss of $204 million as a result of the change in the carrying value of our bitcoin and a gain of $64 million from our conversion of bitcoin to fiat currency,” Tesla said in a statement.

In the fourth quarter of 2022, the firm did not conduct any cryptocurrency transactions. From October to the end of December, bitcoin fell by 15%, but Tesla remained faithful to the first cryptocurrency. So, only the last three months of 2022 depreciated investments in bitcoin by $34 million. In 2021, the company earned $128 million on bitcoin. At the end of the year, the loss from holding bitcoins on the company’s balance sheet amounted to $101 million.

Tesla invested $1.5 billion in bitcoin in February 2021. Then the BTC rate was $46,000, and by November 2021, Bitcoin reached a record price of $69,000. Since then, digital gold has not risen to such heights, so the whole of 2022 can be considered a failure for the first cryptocurrency and all its investors.

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