💰 Make Money with Versus 👉
Tesla Realized Gains Revealed After 75% Bitcoin Sell-Off
Earlier this week, Tesla made headlines as it was reported that the electric car giant sold off 75% of its Bitcoin holding. In February of 2021, Tesla announced that it had purchased $1.5 Billion worth of Bitcoin, a move that caused the price of Bitcoin to surge. Tesla then trimmed its bitcoin position by 10%, a sale that boosted that quarter’s earnings by $272 million. It had not bought or sold any more bitcoin until the most recent announcement. It is unclear Telsa’s buy-in price for Bitcoin, but it has been speculated that since it sold 75% after Bitcoin’s downfall to the 18-20k range, Tesla took a loss. But according to its SEC filings, Tesla recorded realized gains of $64 million on its recent bitcoin conversion into fiat currency, while still holding bitcoin worth $222 million in market value after selling 75% of its crypto holdings.
In a statement informing the SEC, Tesla stated;
We recorded $170 million of impairment losses resulting from changes to the carrying value of our bitcoin and gains of $64 million on certain conversions of bitcoin into fiat currency by us.
Tesla continued detailing their current position;
The fair market value of such digital assets held as of June 30, 2022 was $222 million.
On June 30, the price of BTC was hovering around $20K, after falling briefly to $18,784. At the time of writing, BTC is trading at $21,106.43, down 5.8% in the past 7 days according to coingecko.com.
Many experts, analysts, and even Elon himself are calling for a recession in the near future, which is one of the reasons Tesla wanted to be in fiat. Another reason is because of issues Tesla is facing with their relationship in China.
In an earnings call, Musk stated;
“The reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate so it was important for us to maximize our cash position.”
▬▬▬▬▬▬▬▬▬▬
🎵BACKGROUND MUSIC licensed through AudioJungle & Epidemic Sound
🎥FOOTAGE licensed through VideoBlocks and Filmpac, except parts about the topic that have been used under fair use.
▬▬▬▬▬▬▬▬▬▬
FAIR-USE COPYRIGHT DISCLAIMER
Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for ”fair use” for purposes such as criticism, commenting, news reporting, teaching, scholarship, and research. Fair use is a use permitted by the copyright statute that might otherwise be infringing. Non-profit, educational, or personal use tips the balance in favor of fair use.
-This video has no negative impact on the original works (It would actually be positive for them)
-This video is also for teaching and inspirational purposes.
– It is not transformative in nature.
