Even though Tesla was heavily criticized but still it is one of the great devotees of Bitcoin as its present Bitcoin holding is still exceeding US$ 1.3 Billion. The fact was duly disclosed by Tesla in its Q2 Financial Report which also revealed that during the second quarter, the company neither sold any Bitcoins nor purchased any of them. The report yet discloses US$ 23 Million as the accumulated damage at the end of Tesla in respect of its Bitcoin holding.
The Q2 Financial Report of Tesla has been published and also made public. The report was duly published by the company’s CEO, Mr. Elon Musk.
The published report revealed that Tesla has, under its ownership and possession, Bitcoin units worth US$ 1.311 Billion. For the purposes of evaluating the present market value of Tesla’s Bitcoin, the exchange rate was taken as of 30th June 2021.
It could be seen evident from the report that during the 2nd quarter, there hasn’t been any noticeable investment made by Tesla. In fact, Tesla neither added any further Bitcoins into its holding nor sold any of its owned Bitcoins. Since the report is unaudited, therefore, the report also contains Tesla’s Bitcoin investment of US$ 1.5 Billion made in the first quarter.
Though Tesla hadn’t disposed of any Bitcoin in the second quarter at the end of quarter one, Tesla did in fact sell some Bitcoins. The report provides that Tesla had made a sale of Bitcoins worth US$ 272 Million. This was the same sale that was earlier explained by the company’s CEO and only represented 10% of the entire holding. Musk explained at that time that the decision of selling a few Bitcoins was taken to verify Bitcoin’s liquidity. However, even then Tesla was criticized mainly by the Bitcoin community because Musk and Tesla are considered crucial elements of Bitcoin’s success.
About three months ago, Tesla had revealed that its Bitcoin holding was valued at US$ 2.5 Billion. However, since then the value of Bitcoin is gradually going down. Approximately there is almost a 50% reduction in Bitcoin’s today’s value than the one that prevailed in April 2021.
This is why the latest unaudited financial accounts of Tesla in respect of Q2 show an impairment of US$ 23 Million. No doubt, since Tesla has been investing in Bitcoin, the profits of the company are huge against the total losses it has accumulated over time.
With regard to the impairment, Tesla has said that it will analyze the same on a quarterly basis. The company then suggested that an annual statement containing a consolidated statement will provide for a separate account of Bitcoin-related losses and impairments.
However, it has been further confirmed from the published report that Tesla is holding almost 90% of its Bitcoin holding. There are currently no upcoming plans of selling any of its Bitcoins in the future, confirmed Musk.