In a new SEC filing, Tesla (TSLA) provided an update on its Bitcoin holdings, indicating that the company currently has $1.99 billion in the digital currency at its disposal.
Tesla made a $1.5 billion investment in Bitcoin at the start of the year 2021.
After a short period of time, the company began taking bitcoin as payment for new vehicles.
Tesla, on the other hand, took a step back in terms of cryptocurrency a few days later by eliminating the Bitcoin payment option from the Tesla website. It was raised by the corporation that the Bitcoin network consumes a lot of electricity.
Vehicle purchases made with Bitcoin have been halted at Tesla. We are concerned about the fast expanding usage of fossil fuels for Bitcoin mining and transactions, particularly coal, which emits the highest levels of greenhouse gases of any fossil fuel used for mining.
Several members of the Tesla community expressed concern about this when the firm originally announced its Bitcoin investment, and many were disappointed that the company hadn’t considered it before making the decision.
Tesla stated at the time that they were not planning to sell their Bitcoin holdings and that they intended to restart accepting Bitcoin payments once the network had a higher proportion of renewable energy in its composition.
Following improvements in the energy mix for Bitcoin mining, Tesla CEO Elon Musk stated this summer that the company anticipates returning to accepting Bitcoin payments.
The company is still hanging onto the cryptocurrency, and it provided an update in its most recent 10-K SEC filing, which was published today.
After selling a portion of its Bitcoin holdings to test the market’s liquidity, the automaker revealed that it now has approximately $2 billion in Bitcoin at current market prices:
“We purchased and received $1.50 billion in bitcoin during the fiscal year ending December 31, 2021. We recognised $101 million in impairment losses on digital assets during the fiscal year ending December 31, 2021. Our gains from the sale of a portion of our interests in March 2021 were $128 million, which was a record for us. Gains from restructuring and other activities are reflected in the consolidated statement of operations after deducting any impairment losses. As of December 31, 2021, the carrying value of our digital assets held was $1.26 billion, which indicates cumulative impairments of $101 million over the previous three years. “As of December 31, 2021, the fair market value of such digital assets possessed was $1.99 billion,” the report states.
During a spike in Bitcoin’s value last year, Tesla’s stock briefly rose by more than $1 billion..
Although Bitcion and the broader cryptocurrency market have since fallen, prices have begun to rise again in recent weeks, with Bitcoin rising by 15 percent in in the last week alone.###