Tesla’s Bitcoin sale resulted in a massive profit of $64 million.

In the second quarter, Elon Musk’s electric car company sold 75% of its BTC. Both inflation and the battery cell market’s rivalry had an effect on the company’s overall profitability.

Even as crypto prices have dropped into a bear market in the second quarter, Tesla’s move to sell off the majority of its Bitcoin holdings brought in a large profit for the company.

According to an official Form 10-Q filing with the United States Securities and Exchange Commission, or SEC, Tesla reported $170 million in impairment losses during the first half of 2022 “derived from changes to the carrying value” of its Bitcoin assets.

The company earned a realized gain of $64 million after selling 75% of its BTC stocks for cash in the second quarter.

An impairment loss in finance arises when the fair value of an asset held by a company drops below the investment’s carrying value.

With second-quarter revenues of $16.93 billion, Tesla earned $2.27 per share. Even though it was lower than it had been in the first quarter, profitability was higher than it had been a year earlier.

However, escalating inflation and intensifying competition for battery cells had an influence on the company’s profitability.

10,800 BTC are still held by the manufacturer of electric vehicles, according to Bitcoin Treasuries. Tesla’s digital asset holdings are currently valued at about $22,000 BTC, or about $237 million.

There were no fresh revelations regarding Tesla’s digital asset strategy in the 10-K report. The company did acknowledge that its interests could change over time and could increase or decrease:

As with any investment, we may raise or lower our holdings of digital assets at any moment based on the needs of the company and our assessment of the market and environmental conditions. This is consistent with how we manage fiat-based cash and cash equivalent accounts.

Mufasa
Mufasa
Mufasa is the lead writer at CryptoMufasa who likes to share all the latest info on the crypto world with you! Mufasa Enjoys enjoys a good read and recommendations so don't forget to comment on the posts and let him know.

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