According to Tesla’s third quarter 2022 earnings report, which was recently published on the website of the US Securities and Exchange Commission, the company suffered an unrealized loss of $170 million in the first nine months of 2022 from its $1.5 billion investment in Bitcoin in 2021. It is clearly the result of the decrease in the price of Bitcoin during this period compared to the purchase price of the Tesla complex. It should be noted that the loss of Tesla from its Bitcoin assets during the first 6 months of 2022 was also estimated at the same amount, which means that the amount of Tesla’s loss from investing in Bitcoin has not changed in the last 3 months.
To Report According to Cointelegraph, Tesla has also made a total of $64 million in (realized) profits from selling its bitcoins over the past two years, bringing the company’s net loss from its bitcoin investment to $106 million.
As stated in the text of Tesla’s new earnings report, this loss of several million dollars has not caused a disruption in the company’s main activities. However, the Elon Musk-led company currently only has $218 million worth of bitcoins.
According to accounting rules, digital currencies are considered intangible assets with an indefinite life. Therefore, any decrease in the value of Bitcoin requires Tesla to measure the decrease in the value of its assets, while positive changes (increase in the price of Bitcoin) until the sale of Tesla assets require the company to revalue its Bitcoins. does not. In this financial structure, losses can be deducted from portfolio profits to reduce the company’s tax liabilities, and capital gains will not be taxed until an asset is sold.
Elon Musk, the CEO of Tesla, is known in the cryptocurrency space for his support of Dogecoin and his $44 billion offer to buy the social network Twitter. After buying Twitter, he plans to remove bots that spread spam and fraudulent messages from this social network, and he believes that these bots have made the situation of Twitter very miserable. He once joked that if he was given a Dogecoin for every scam he saw on Twitter, he would now have 100 billion Dogecoins.