Tesla’s Bitcoin Holdings Remained The Same in Q3 And Q4 of 2021

In its quarterly report book released on Wednesday, Tesla announced that the value of its BTC holdings was the same in Q4 as it was in Q3 because the price of BTC was essentially unchanged at the end of both period reported.

Tesla has announced that its Bitcoin holdings in Q3 and Q4 remained unchanged at $1.23 billion. The company said that this was due to the fact that the price of BTC at the end of the third quarter was basically almost the same at the end of the fourth quarter. This means that the company did not record any impairment as a result.

These were made known by the Tesla management in its quarterly report on Wednesday, January 26.

Tesla bought $1.5 billion worth of BTC in February 2021, but the company offloaded 10% of its holdings, essentially boosting the company’s earnings by $272 million.

The company was required to report impairment in Q3 because Bitcoin fell in value within that period. This is despite the fact that the company did not add more cryptocurrencies to its BTC stash.

It is required that companies report instances when their assets decline in value as impairment, but they’re not required to report an increase in the value of an asset as gain in standard accounting practice.

No Bitcoin Additions in Q2 and Q3

The car maker reported a $51 million impairment in Q3 due to a decline in the value of BTC even though it did not buy the digital asset in Q2 and Q3.

After the financial report was released, Tesla shares fell by 4% but quickly recovered, ending the day with a slight gain at $939.51.

The company’s adjusted earnings for Q4 put the share value at $2.54. This is higher than the $2.36 projected by analysts. The company’s revenue for the period stood at $17.7 billion, which is also higher than the $17.1 billion expected.

 

 

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.