Tesla Describes a Bitcoin Loss of $140 Million in an SEC Filing

Since 2021, the electric vehicle company’s Bitcoin losses have doubled.

According to a Monday filing with the U.S. Securities and Exchange Commission, Tesla lost nearly $140 million betting on Bitcoin. In 2022, the electric vehicle company incurred a $204 million impairment charge while gaining $64 million from Bitcoin conversion.

“During the year ended December 31, 2022, we reported impairment losses of $204 million attributable to fluctuations in the carrying value of our Bitcoin and profits of $64 million on some conversions of bitcoin into fiat money,” Tesla said in the filing.

A charge for impairment is a drop or loss in the value of an asset. It may be caused by a shift in economic conditions, such as the crypto winter that seized the market following Terra Luna’s collapse in May 2022.

The yearly filing to the SEC comes less than a week after Tesla’s quarterly earnings report, which did not contain Bitcoin transactions but saw the value of its assets decrease, resulting in a $43 million loss for the last four months of 2022.

According to data disclosed by the electric vehicle maker before to its third-quarter investor relations call, Tesla’s Bitcoin holdings remain constant from the second quarter of 2022.

Tesla purchased a remarkable $1.5 billion in Bitcoin in February 2021, making it the second-largest corporate holder of the cryptocurrency, behind only MicroStrategy. At the moment, the price per Bitcoin was $46,364. According to CoinGecko, Bitcoin reached an all-time high of $69,044 per coin on November 10, 2021.

In 2022, Bitcoin and the rest of the cryptocurrency market saw a precipitous decline. As of 31 January 2023, Bitcoin trades for around $23,051.

Tesla’s impairment losses have roughly doubled since 2021 when it declared a $101 million impairment loss on digital assets and $128 million in earnings from the sale of Bitcoin in an SEC filing.

In October 2022, Tesla announced to investors that it still had over $218 million in Bitcoin, after having sold 75% of its Bitcoin holdings in July for over $936 million.

Also Read: DYdX Users Purchased $466 Billion Worth Of Crypto Derivatives In 2022