Tesla posts $101 million loss from impairment of Bitcoin held in reserves

For 2021, Tesla reported a $101 million loss from the impairment of Bitcoin held on its balance sheet, of which spent $1.5 billion. The figures are disclosed in the SEC filing.

The $101 million loss was driven by a “change in the carrying value of the first cryptocurrency.” As of December 31, 2021, the fair market value of the position stood at $1.99 billion.

According to BitcoinTreasuries, at the time of writing the figure stood at $1.85 billion.

The document states that the company also earned $128 million “as a result of certain sales”.

“We believe in the long-term potential of digital assets as both investments and a liquid alternative to cash. … As with any investment, the company is prepared to at any time increase or decrease the size of its position in digital assets depending on the needs of the business and our view of the market and external conditions”, — as noted in the filing.

Earlier, Elon Musk described the decision to buy Bitcoin as a reserve asset as ‘quite risky’.

In March 2021 the billionaire announced the start of selling electric cars for the first cryptocurrency in the United States. In May the company halted accepting BTC due to concerns about the environmental sustainability of its mining.

In the summer, Musk said that Tesla would resume selling electric cars for Bitcoin when he confirms that at least half of miners have switched to renewable energy. In the same period, the founder and head of the BTC.TOP mining pool Jiang Zhuoer pointed out to the entrepreneur that the condition has been met as a result of Chinese authorities’ prohibitive measures against mining.

In October, Tesla hinted at the possibility of resuming cryptocurrency payments.

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