Tesla records $204M loss from bitcoin in 2022 • TechCrunch


Tesla recorded a $204 million impairment loss in 2022 on its bitcoin holdings, according to regulatory filings. The loss was offset by $64 million in profits from bitcoin trading, leaving the automaker with a net loss of $140 million.

Tesla had invested $1.5 billion in bitcoin during the first quarter of 2021, stating that it believed in the longevity of the cryptocurrency. At the time, the company said bitcoin was a great place to store cash and still access it immediately, all the while providing a better return on investment than more traditional central banks. In fact, after its initial purchase, Tesla promptly trimmed its position by 10%, making the automaker a quick $101 million.

In March 2021, CEO Elon Musk said Tesla would start accepting bitcoin as payments for Tesla vehicles, causing the price of the crypto to boom. A few weeks later, Musk and Tesla backpedaled on that decision, expressing concern for the amount of energy needed to mine bitcoin. The price of bitcoin then subsequently sank.

Last year, as the value of bitcoin began to plunge,…

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