Elon Musk’s Bitcoin Bet Cost Tesla $23 Million

Elon Musk's Bitcoin Bet Cost Tesla $23 Million

Bitcoin’s massive correction in Q2 made Tesla report a $23 million impairment loss on Monday. 

As previously explained by CNBC’s Katy Rooney, the company was expected to book the loss due to accounting rules:   

Tesla holds crypto as an ‘intangible asset,’ and because of accounting rules, when Bitcoin’s value drops below a certain amount, companies have to mark that down in their financial statements.  

However, she points out that the impairment is not as high as some analysts expected. 

The e-car maker made a huge splash in the crypto market by investing $1.5 billion in early 2021. 

Related

IMF Claims Bitcoin Threatens Economic Stability

In April, it sold $101 million worth of Bitcoin in order to test the cryptocurrency’s liquidity. 

Yet, Tesla hasn’t sold any of its cryptocurrency holdings. It currently has $1.3 billion worth of Bitcoin on its balance sheet.   

Disclaimer: The opinions expressed by our writers are their
own and do not represent the views of U.Today. The financial and market information
provided on U.Today is intended for informational purposes only. U.Today is not
liable for any financial losses incurred while trading cryptocurrencies. Conduct
your own research by contacting financial experts before making any investment
decisions. We believe that all content is accurate as of the date of publication,
but certain offers mentioned may no longer be available.

Elon Musk’s Bitcoin Bet Cost Tesla $23 Million

Elon Musk's Bitcoin Bet Cost Tesla $23 Million

Bitcoin’s massive correction in Q2 made Tesla report a $23 million impairment loss on Monday. 

As previously explained by CNBC’s Katy Rooney, the company was expected to book the loss due to accounting rules:   

Tesla holds crypto as an ‘intangible asset,’ and because of accounting rules, when Bitcoin’s value drops below a certain amount, companies have to mark that down in their financial statements.  

However, she points out that the impairment is not as high as some analysts expected. 

The e-car maker made a huge splash in the crypto market by investing $1.5 billion in early 2021. 

Related

IMF Claims Bitcoin Threatens Economic Stability

In April, it sold $101 million worth of Bitcoin in order to test the cryptocurrency’s liquidity. 

Yet, Tesla hasn’t sold any of its cryptocurrency holdings. It currently has $1.3 billion worth of Bitcoin on its balance sheet.   

Disclaimer: The opinions expressed by our writers are their
own and do not represent the views of U.Today. The financial and market information
provided on U.Today is intended for informational purposes only. U.Today is not
liable for any financial losses incurred while trading cryptocurrencies. Conduct
your own research by contacting financial experts before making any investment
decisions. We believe that all content is accurate as of the date of publication,
but certain offers mentioned may no longer be available.

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