Elon Musk, tesla Tesla gained $64m on Bitcoin Sales in the second quarter

Tesla (TSLA) recorded a profit of $64 million on the sale of its 75% Bitcoin (BTC) holdings that obtained it $936 million in the second quarter, as well as an impairment expense of $170 million on its remaining holdings, according to its 10-Q quarterly filing with the Securities and Exchange Commission (SEC) on Monday.


The quarterly filing explained on information and statements provided in Tesla’s quarterly earnings release and conference call on Wednesday.


Also Read: Binance Fined $3.4 Million By Dutch Central Bank


On the earnings call, Tesla Chief Financial Officer (CFO) Zach Kirkhorn noted that the company converted a majority of its bitcoin holdings to fiat (USD) for a realized gain, offset by impairment expense charges on the remainder of its holdings, netting a $106 million cost to its Profit and Loss Statement included within restructuring and other costs.



In its 10-Q quarterly filing on Monday, Tesla said it logged the $170 million impairment expense charge and $64 million gain in the six-month period ending June 30. Because it didn’t increase to or reduce any of its BTC holdings in the first quarter, nor did it record an impairment expense charge then, all those results have occurred in the second quarter of the current financial year.


Also Read: How To Unlock A Restricted Coinbase Account?


Tesla first purchased $1.5 billion worth of Bitcoin (BTC) in the first quarter of 2021 but did not disclose its weighted average purchase price. Later in the first quarter of 2021 the firm cut its bitcoin holdings by 10%, a sale that boosted that quarter’s earnings by $272 million. It hadn't increased to or reduced its BTC holdings until the second quarter of 2022, a move CEO Elon Musk explained was taken to raise cash in the face of COVID-19 lockdowns in China, one of the Tesla’s largest markets.


Also Read: A Detailed Guide To The Coinbase Account Recovery


The firm did not reveal the selling price for its bitcoin holdings in the second quarter but a rough calculation shows the weighted average selling price would be of around $29,000 per bitcoin, helping the company avoid a much more substantial impairment expense charge. Bitcoin ended the second quarter at a value of about $18,700.


Leave a Comment


CryptoHelpExchange disclaims all liability for any mistakes on this website (including omissions or inaccurate material). Even if they are the consequence of mistakes, CryptoHelpExchange disclaims all liability for any trading or investment losses caused by visitors.

Without the express consent of CryptoHelpExchange, no part of the written information on this website may be duplicated. If it is discovered that material is being copied without CryptoHelpExchange's consent, that organization will pursue legal action against those responsible to the fullest extent permitted by the law. The aforementioned rule does not apply to any RSS feeds that CryptoHelpExchange offers or situations where explicit permission from CryptoHelpExchange was given.

Your single and only option if you disagree with any of the terms as stated above is to stop using CryptoHelpExchange.