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Tesla Q2 result records $23million profit from BTC

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Tesla Inc. has announced its quarterly result. The company has not yet sold its bitcoin holdings. The electric company recorded a remarkable quarter in profit, earning $1.3 billion in bitcoin. 

Tesla Inc. has announced its quarterly result, where it has also revealed that the company has not yet sold its bitcoin holdings. Irrespective of Tesla CEO Elon Musk’s concern about the leading cryptocurrency’s environmental impact, the company has been holding a major portion of bitcoin. 

Under this quarterly result, the electronic carmaker has not reported any new sales or purchases of digital currency in its Q2 presentation. The company still owns $1.3 billion worth of Bitcoin. 

Quarterly results 

Tesla has recorded a profit of $1 billion as its quarterly earnings. The company has produced more than 20,000 vehicles. The bitcoin value of the company has decreased in value since its purchase earlier this year. Tesla had invested $1.5billion in bitcoin in February, which increased in value a month later after the purchase. It rose to $2.48 billion. 

Musk has informed that Tesla has sold 10% of its BTC holdings, to prove that there is enough liquidity in the market. Tesla’s earnings increased by $272 million in Q1 after the sale of Bitcoin in a small portion. 

In Q2, Tesla reported a $23 million impairment on its bitcoin holdings. It is calculated by the lowest value BTC recorded in the period. Tesla had recorded a value of $28,000 under generally accepted accounting standards. 

The prices of Bitcoin have been very volatile. The decrease in its prices should not affect the company’s earnings as long as Tesla did not sell any more of its holdings. As per the accounting rules, if BTC rises, companies would not need to recognize a profit. However, a loss would be recorded if the asset’s price slides. 

Earlier in May, Elon Musk tweeted from his official account that the company will no longer accept Bitcoin due to environmental concerns. He said that the company will no longer accept any payments for the sales of cars. 

But now with the changing mining needs and changing times, Musk announced this month that mining is becoming friendly and that Tesla could soon resume accepting bitcoin as payments.

BTC price retracing 

The BTC prices have been retracing after the increase in the buying pressure. This increasing purchase has pushed the BTC prices to $40,000 for the first time since June. Although BTC has the potential to increase, the price of BTC was stopped at 200 twelve hours simple moving average (SMA) just below $40,680.

Hence, the price of bitcoin was not able to close above 38.2% Fibonacci extension level at $39,608. It has opened up the BTC possibility for support. The 23.6% Fibonacci extension level at $35,459. It should act as a first line of defense for the leading cryptocurrency before the 100 twelve hours SMA at $34,272 before it shows the declining trend, coinciding with the 50 twelve hours SMA at $33,106. 

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