Tesla Recorded $64M Profit From Q2 BTC Sale
- The company’s 10-Q filing with the SEC revealed Tesla had made a $64 million profit from selling its Bitcoin in the second quarter of 2022.
- The electric car manufacturer also reported an impairment loss of $170 million, which was the result from changes to the carrying value of its BTC holdings.
Elon Musk at The Summit 2013, Dublin, Ireland, 31 October 2013. Dan Taylor/Heisenberg Media
Despite the crypto bear market, Tesla was still able to make a good profit from selling part of its Bitcoin (BTC) reserves, documents filed with the U.S. Securities and Exchange Commission (SEC) on 25 July show.
According to Tesla’s 10-Q filing with the SEC, the company reported it had made a realized gain of $64 million from selling 75% of its BTC stash in the second quarter of 2022. Tesla also reported it had accumulated $170 million of impairment losses in the first six months of the year, which were the “result from changes to the carrying value” of its BTC holdings.
The electric car manufacturer first invested into Bitcoin in the first quarter of 2021, when it purchased around $1.5 billion worth of the digital asset. Shortly after, the company sold 10% of its BTC stockpile to boost its quarter earnings by $272 million, after which it never touched its crypto reserves until the most recent quarter.
Tesla first revealed it had converted 75% of its BTC holdings during its quarterly report last week, saying the conversions in Q2 added $926M of cash to our balance sheet”. According to BTC tracking website Bitcoin Treasuries, the company should still have about 10,800 BTC in its books, which should equate to around $236 million at current prices.
- During an interview with FT, CEO Brian Armstrong said that before the lawsuit a SEC staff member had said that all crypto except BTC was security, and should be delisted.
- When asked how he came to that conclusion, the SEC staff member reportedly said “we’re not going to explain it to you, you need to delist every asset other that Bitcoin”.
Coinbase CEO Brian Armstrong appears on stage at the 2014 TechCrunch Disrupt Europe/London, at The Old Billingsgate on October 21, 2014 in London, England. Anthony Harvey/Getty Images for TechCrunch
- A federal judge ruled that the sale of XRP through exchanges and algorithms did not qualify as selling securities, which could have a major impact on several SEC lawsuits.
- The institutional sale of the token, however, did violate federal securities laws, and the lawsuit between the SEC and Ripple will have to go to trial.
- Binance had filed a complaint against a 17 June SEC press release, claiming that the regulator had made “misleading” statements that could have tainted the jury pool.
- The presiding judge rejected the complaint by saying that it was not the court’s mandate to “wordsmith” public statements, and that it was not clear if the statements had any effect on the case.