The electric vehicle maker earned $64 million in profits from Bitcoin trading, which was offset by a $204-million impairment.
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According to a filing with the United States Securities and Exchange Commission on Jan. 31, electric vehicle manufacturer Tesla disclosed that it had recorded a $204-million gross impairment loss during 2022 on its Bitcoin (BTC) holdings. Simultaneously, Tesla recorded a gain of $64 million from converting BTC into fiat currency at various points during the year, resulting in a net loss of $140 million from its cryptocurrency trading activities.
The filing further explained the impact of volatile crypto prices on Tesla’s bottom line:
Related: Elon Musk lays out when Tesla will begin accepting Bitcoin payments
In the first quarter of 2021, Tesla invested $1.5 billion in Bitcoin. At the time, its founder, Elon Musk, announced that the electric vehicle manufacturer would start accepting BTC payments from U.S.-based consumers.
The policy was retracted just months later, as Musk cited the need for “confirmation of reasonable (~50%) clean energy usage by [Bitcoin] miners with positive future trend” before the company would accept the means of payment again. Tesla reportedly sold 75% of its BTC holdings in the second quarter of 2022.
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