Tesla is presently holding bitcoin worth $1.26 billion on its balance sheet, Tesla third-quarter earnings report reveals. The electric car company reported a bitcoin-related impairment of $51 million in the quarter. Meanwhile, CEO Elon Musk tweeted a meme showing the value of bitcoin at $69K and ether at $4.2K.
Tesla Continues to Hold Bitcoin on Balance Sheet
Elon Musk’s electric car company, Tesla (Nasdaq: TSLA), released its third-quarter earnings report Wednesday. The company posted $13.757 billion in revenue, a 57% increase from the same interval last year. It wrote: “The third quarter of 2021 was a record quarter in many respects. We achieved our best-ever net income, working profit and gross profit.”
Tesla balance sheet reveals net digital assets of $1.26 billion as of Sept. 30, down from $1.311 billion at the end of the second quarter. Tesla reported a bitcoin-related impairment of $51 million in Q3.
Tesla’s cash flow statement nonetheless reveals that the one BTC purchase and sale were made in the first quarter when the corporate bought bitcoin price $1.5 billion and sold $272 million worth of BTC.
In response to Tesla’s 10-K form filed with the U.S. Securities and Exchange Commission (SEC), the corporate’s “digital assets are initially recorded at price and are subsequently remeasured on the consolidated balance sheet at value, net of any impairment losses incurred since acquisition.” Tesla explained that it performs an analysis each quarter to determine impairment, adding: “If the carrying worth of the digital asset exceeds the truthful worth based on the bottom worth quoted within the active exchanges during the period, we will recognize an impairment loss equal to the distinction in the consolidated statement of operations.”
Whereas Tesla never disclosed how many bitcoins it owned, CEO Elon Musk revealed in July that the amount was near 42K BTC. At the time of writing, the value of bitcoin is $$63,053.60. It surpassed all-time highs Wednesday following the debut of the U.S.’ first bitcoin futures exchange-traded fund (ETF). This implies Tesla’s bitcoin stash is presently priced at about $2.65 billion.
On Wednesday, Musk tweeted a meme showing the price of bitcoin at $69K and the price of ether at $4.2K.
Musk has long been a crypto proponent. He revealed in July that besides bitcoin, he personally owned “a bit of Ethereum and dogecoin.” The Tesla executive opined, “In general, I’m a supporter of bitcoin,” noting that the BTC he owned was “price much more than Ethereum or doge.”
In September, Musk mentioned that governments shouldn’t attempt to control or regulate cryptocurrencies, emphasizing that regulators ought to “do nothing” about crypto.
Source: News Bitcoin