Tesla reports a profit of $ 64 million from the sale of bitcoins
Tesla's decision to offload most of its BTC brought the company a big profit in the second quarter, even though cryptocurrency prices fell in a bear market.
In the first six months of 2022, Tesla recorded an impairment loss of $170 million, "as a result of a change in the book value" of its bitcoin assets, according to the official form 10-Q. After selling 75% of its BTC cache for dollars in the second quarter, the company made a realized profit of $64 million. In finance, an impairment loss occurs when the fair value of an asset owned by a company falls below the carrying amount of the investment.
Tesla's earnings per share in the second quarter were $2.27 on revenue of $16.93 billion. Although profitability decreased compared to the first quarter, it increased compared to last year's levels. However, the company's profitability has been affected by rising inflation and increasing competition for batteries.
According to Bitcoin Treasuries, the electric car maker still has 10,800 BTC in its ledgers. At the current price of about $22,000, Tesla's digital asset holdings are worth approximately $237 million. The 10-K disclosure revealed no new ideas about Tesla's digital asset strategy. However, the company has stated that it may increase or decrease its assets over time.:
"As with any investment and in accordance with how we manage fiat money and equivalent accounts, we can increase or decrease our digital asset holdings at any time depending on business needs and our view of market and environmental conditions."
https://coin-signal.com/cryptonews/tesla-reports-a-profit-of-64-million-from-the-sale-of-bitcoins/
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