According to The Telegraph, this amount is equivalent to 9% of the carmaker’s profits for all of 2021

Tesla’s unrealized losses from bitcoin investments amount to $440 million

04.07.2022 - 08:45

494

2 min

What’s new? Tesla’s unrealized losses from bitcoin investments in the second quarter of 2022 amounted to $440 million. The company bought $1,5 billion worth of BTC last February, but as the asset’s rate plunged, its investments have lost substantially in value. Tesla reported $1,26 billion in reserves in its report for the first quarter of 2022. In this, on June 30, the last day of the second fiscal quarter, bitcoin was trading at around $19 000 and the company’s investments were valued at just $820,8 million, The Telegraph reports.

The Telegraph’s material

What else does the outlet write? The journalists note that according to accounting practices, the company does not record gains or losses on its investments until it sells the assets. Based on the difference between the valuation of investments at the end of the first and second quarters of 2022, the carmaker’s losses are $440 million, equivalent to 9% of its profits for the full year 2021.

As of July 4, 09:10 UTC, bitcoin is trading at $19 153, having gained 0,97% per day. At the same time, the asset lost 10,68% in price over the week, according to the Binance exchange.

Unrealized losses at analytics software provider MicroStrategy from investments in the first cryptocurrency approached $1,5 billion. The company has a total of 129 699 BTC on its balance sheet, purchased for $3,97 billion (at an average price of $30 664). Given the asset’s current rate, MicroStrategy’s cryptocurrency savings are estimated at $2,48 billion.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy