Elon Musk’s electric car company Tesla holds $1.311 billion worth of bitcoin. The company did not buy or sell any bitcoin in the second quarter, but recorded a $23 million bitcoin-related impairment. Tesla’s actions reiterated Musk’s previous statement that neither he nor Tesla sold their tokens.
Tesla’s second quarter bitcoin holdings
Elon Musk’s Tesla released its second-quarter earnings report on Monday. The company’s unaudited balance sheet for the second quarter of 2021 showed that as of June 30, its digital net asset value was $1.311 billion.
Tesla neither bought nor sold Bitcoin in the second quarter
Tesla did not buy or sell any bitcoins in the second quarter.The company’s unaudited cash flow statement for the second quarter still shows that the only cryptocurrency purchased is $1.5 billion Bitcoin Purchased in the first quarter.
The cash flow statement also shows that the only time Tesla sold its bitcoin was in the first quarter at a price of $272 million.Tesla CEO Elon Musk previously explain The sale was to prove the liquidity of Bitcoin. On June 13th, he wrote on Twitter: “Tesla only sold about 10% of the shares to confirm Bitcoin It can be liquidated easily without moving the market. “
In April of this year, Tesla disclosed in a document submitted to the U.S. Securities and Exchange Commission (SEC) that its Bitcoin storage value $2.5 billion.
$23 million in Bitcoin-related impairment
Tesla’s second-quarter earnings report specifically mentioned Bitcoin in the “Profitability” section, which highlighted items that offset the company’s operating income, including “Bitcoin-related $23 million in impairment.”
According to Tesla’s 10-K form filed with the U.S. Securities and Exchange Commission, the company treats digital assets as “intangible assets indefinitely in accordance with ASC 350, intangible assets-goodwill and other regulations”, detailing:
Digital assets are initially recorded at cost and then remeasured at cost on the consolidated balance sheet, deducting any impairment losses that have occurred since the acquisition.
“We will conduct an analysis every quarter to determine impairment. If the book value of the digital asset exceeds the fair value based on the lowest quoted price of the active exchange during the period, we will confirm that the impairment loss is equal to the difference in the consolidated operating statement,” the Detailed company description.
Tesla Start accepting Bitcoin Payment was made in March, but stopped in May.Musk quote environmental Problem as the cause and said that Tesla will recover Miners accept Bitcoin when they confirm that they use 50% of clean energy.
recently Bitcoin events “B Word”, Musk revealed that he personally owns three cryptocurrencies-Bitcoin, Ethereum and Dogecoin-and Spacex owns Bitcoin. “I might cheer, but I won’t sell…I want to see Bitcoin succeed,” he said, adding that “Tesla is likely to resume accepting Bitcoin.”
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