The Chhattisgarh

Beyond The Region

Tesla Writes Down $170 Million in Bitcoin Impairment Costs in Q2 2022

Tesla mentioned it recorded a $170 million (roughly Rs. 1,360 crore) impairment cost towards the carrying worth of its Bitcoin holdings for the primary six months of the 12 months, in addition to features of $64 million (roughly Rs. 512 crore) from sure gross sales of its Bitcoin holdings in a submitting with the Securities and Change Fee (SEC) on Monday. The phrase ‘impairment cost’ is a time period used to account for an asset that’s not as helpful as could have as soon as been. When it bought its Bitcoin final 12 months, Tesla mentioned it will study its BTC holdings each quarter to examine for impairments.

In response to an official Kind 10-Q submitting with the SEC, after promoting 75 % of its BTC stash for US {Dollars} within the second quarter, the corporate netted a realised acquire of roughly $64 million (roughly Rs. 512 crore). On condition that features can solely be recorded as soon as appreciated digital property have been bought, we do know that Tesla did in the end make features off its BTC buy in 2021.

Tesla bought $936 million (roughly Rs. 7,490 crore) value of Bitcoin final week to bolster its money place within the wake of the shutdown of its Shanghai manufacturing facility as China offers with surging Covid-19 instances. The sale represents roughly 75 % of its $1.5 billion (roughly Rs. 12,002 crore) cryptocurrency stash, which the corporate started accumulating in Q1 2021.

CEO Elon Musk informed the Wall Road Journal that the sale doesn’t point out a broader shunning of Bitcoin. The corporate nonetheless holds Dogecoin amongst its remaining $218 million (roughly Rs. 1,745 crore) value of cryptocurrencies. He nonetheless personally holds Bitcoin, Dogecoin, and Ether, in keeping with a tweet in March of this 12 months.

Tesla additionally briefly accepted Bitcoin funds, however stopped in Might 2021 due to Musk’s considerations relating to BTC’s environmental footprint.

%d bloggers like this: