Tesla reports $140m SEC loss over Bitcoin position

Negative fair value adjustment of Tesla’s balance-sheet holding of 9,720 BTC during 2022 amounted to $204 million, profit from converting part of the coins — $64 million, net loss — $140 million. The figures are provided in отчетности for SEC.

In the fourth quarter, the negative revaluationstood at $34 million. No Bitcoin transactions were conducted during this period.

In 2021, the company, “as a result of certain sales” of digital gold, earned $128 million. For the year, impairment losses on Bitcoin amounted to $101 million.

In October 2022, the automaker valued the first cryptocurrency on its balance sheet at $218 million.

Three months earlier, Tesla disclosed information about the sale of 75% of the company’s Bitcoins for $936 million. The management explained this move as “necessary to increase liquidity during anti-COVID restrictions in China”.

“As with any investment and in accordance with how we manage fiat currencies and accounts in their equivalents, we may increase or decrease our holdings of digital assets at any time, depending on business needs and our view of the market and external conditions,” the filing says.

The filing noted that the revaluation trajectory of 9,720 BTC could influence further investments in the first cryptocurrency.

Back in February 2021, it emerged that Tesla invested $1.5 billion in Bitcoin. Elon Musk himself described these investments as “quite risky”.