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- Tesla has sold 75% of its crypto holdings
- The company still holds bitcoin at a market value of $222 million
- Tesla has filed the report for the second quarter to the SEC
Even after Tesla has sold its 75% crypto holding, it still holds bitcoin at a market value of $222 million. The company has recently converted its Bitcoin to paper money and reportedly gained $64 million on this conversion.
On Monday, the company’s second-quarter report was filed by Tesla to the Securities and Exchange Commission of the United States.
According to the report, 75% of the company’s bitcoin holdings are converted to paper money, and through this conversion, the company got $936 million in cash on its balance sheet.
What is in the filing?
The company told the Securities and Exchange Commission that:
“We noted a destruction loss of $170 million from changes to the carrying value of our digital money and gained $64 million on converting digital money to paper money.”
In the first three months of 2021, the company bought $1.5 billion of bitcoin and sold the Bitcoin, whose value was $272 million. In the first quarter, the price of bitcoin went down by $32K level and up by $59K level.
In its SEC filing, Tesla explained that the conversion of Bitcoin into paper money in 2021 resulted in a gain of $128 million. Also, the company faced a loss of $23 million in the second quarter of 2021 and $50 million in the first half of the same year. The company also purchased bitcoin with a value of $1.5 billion in the first quarter of 2021.
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Most of the Digital Assets of the Company are Bitcoin
We received a sheer number of virtual assets in the first half of 2022, the company further added in its filing.
Tesla did not take the name of crypto assets other than Bitcoin. Meanwhile, since January 2022, it has been accepting DOGE, dogecoin, which is popularly known as a meme cryptocurrency for some commodities.
The company’s balance sheet reveals that the digital assets company were worth $218 million by the end of the second quarter of 2022. The company clarified:
“As of June end 2022, the market value of held digital assets stood at $222 million.” The value of Bitcoin was floating around $20K after falling drastically from $18,784 on the 30th of June.
The CEO of Tesla, Elon Musk, said during the second quarter earnings of the company that Tesla has sold Bitcoins concerning the volatility of the company. Further, he clarified that “we are planning to increase the bitcoin holdings. So, this step should not be presented as a final decision on bitcoin.”
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.
