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- Tesla disclosed its quarterly earnings report on Wednesday. Interestingly, its Bitcoin Holdings was found to be at $1.26 billion for the second straight quarter.
- In the first quarter and last year’s third quarter, Tesla didn’t purchase or Sell Bitcoin, nor did it report any impairment in its value of Bitcoin holdings.
- In Q1, the company released 10% of its Bitcoin position; the sale led to the quarter’s earnings of $272 million.
On Wednesday, Tesla revealed in its quarterly earnings report that for the second straight quarter, too, its Bitcoin holdings remained at $1.26 billion.
Tesla didn’t do any buying or selling of Bitcoin (BTC) in both the first quarter and last year’s fourth quarter. The electric car maker neither did record any impairments in the value of its Bitcoin holdings since the Bitcoin price was in a stagnant position from the previous quarter to its subsequent one.
Tesla did no addition or deduction in its holdings of Bitcoin in the third quarter of the last year. However, as was required, it showed a $51 million impairment report to show the drop in the cryptocurrency price.
The company is bound to report impairment in case an asset’s price declines during a quarter, as per the accounting rules for crypto assets. However, if there is a rise in the prices, then the profit is not recorded on the balance sheet till the asset is not sold.
As per a February announcement, it made the purchase of $1.5 billion worth of bitcoin. The company let go of 10% of its Bitcoin position in Q1; the sale led to the quarter’s earnings of $272 million. However, in the second quarter, the electric car manufacturer didn’t buy or sell Bitcoin.
According to FactSet, Tesla exceeded its Q1 earnings per share, reaching $3.22 versus the predicted $2.26. At the same time, the revenue was also recorded as more than what was expected ($17.85 billion) to $18.8 billion.
As of Wednesday in-after hours trading, the share price of Tesla increased by 3.6%, reaching $1,012.01. Since the start of the year, shares have dropped to 3%.
In other news, Tesla CEO Elon Musk is making headlines because of his $43 billion offer to make Twitter private.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
