Tesla sold 75% of its bitcoins in the second quarter of 2022. Tesla’s $64 million profit from selling Bitcoin is affected by inflation.
Tesla’s decision to sell its Bitcoin (BTC) holdings in the second quarter of the year paid off big for the company, despite falling financial markets. According to the Q-10 form filed with the United States Securities and Exchange Commission (SEC), in the first six months of 2022, changes in the book value of Tesla’s bitcoin holdings resulted in a $170 million loss for the company, but after the sale 75% of Tesla’s BTC reserves in the second quarter of 2022, the company made a profit of $64 million.
Read more: The future and prediction of Bitcoin price in 2022
Tesla’s $64 million profit from selling Bitcoin
In finance, an asset is impaired when its fair value is lower than the book value of its investors. Tesla earned 2.27 earnings per share in the second quarter of the year. The total profit of this company is estimated at 16.93 billion dollars. Although Tesla’s profitability has decreased compared to the first quarter of the year, but this amount has increased compared to the level of last year.
The main reason for Tesla’s $64 million profit is the increasing effects of inflation and intense competition in the field of battery cells. According to Tesla’s treasury, the company still has 10,800 bitcoins. At Bitcoin’s current price of $22,000, Tesla’s total digital holdings are worth approximately $237 million.
Tesla stated that it will likely increase or decrease its bitcoin holdings over time. The officials of this company added:
As with all of the Company’s investments, we may increase or decrease our digital assets at any time based on the needs of our business and our view of the market, as well as environmental conditions, with respect to how we manage our cash and fiat-based cash equivalent accounts. .
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Source: cointelegraph