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

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.

Discussion
Related Coverage
SEC Reportedly Probing Coinbase Over Token Listings
  • “People familiar with the matter” have said the regulator is investigating Coinbase for allegedly allowing U.S. citizens to trade unregistered securities.
  • The exchange denied the assets were securities, saying that its listing process had been reviewed and approved by the SEC themselves.
July 26, 2022, 8:57 AM
Coinbase co-founder and CEO Brian Armstrong

Coinbase co-founder and CEO Brian Armstrong talking about the future of Bitcoin at TechCrunch Disrupt Europe in October, 2014. TechCrunch

BlockFi to Pay $100M in Penalties Over Interest Accounts
  • BlockFi has agreed to stop onboarding new U.S. customers to its service, though existing U.S. account holders will continue to receive interest payments from the platform.
  • The company will also attempt to bring its BlockFi Interest Accounts into compliance with the Investment Company Act of 1940 within the next 60 days.
Tesla Enables DOGE Payments
  • A month after Elon Musk revealed Tesla’s plans for DOGE, the electric car company added the cryptocurrency as a payment option for its merchandise.
  • Sales made with the meme coin will be considered final, and the items “cannot be returned, exchanged, or canceled”.