Tesla currently holds bitcoin worth $ 1.26 billion on its balance sheet, according to the company’s third quarter earnings report. The electric car maker reported a bitcoin-related depreciation of $ 51 million in the quarter. Meanwhile, CEO Elon Musk tweeted a meme showing the price of bitcoin at $ 69,000 and ether at $ 4.2,000.
Tesla continues to hold Bitcoin on the balance sheet
Elon Musk’s electric car company Tesla (Nasdaq: TSLA) released its third quarter earnings report on Wednesday. The company achieved sales of $ 13.757 billion, an increase of 57% from the same period last year. He wrote: “The third quarter of 2021 was a record quarter in many ways. We achieved our best bottom line, operating profit and gross profit ever. “
Tesla’s balance sheet shows net digital assets of $ 1.26 billion as of September 30, up from $ 1.311 billion at the end of the second quarter. Tesla reported a bitcoin-related depreciation of $ 51 million in the third quarter.
Tesla’s cash flow statement still shows that the only purchases and sales of BTC were made in the first quarter, when the company bought bitcoin for $ 1.5 billion and sold $ 272 million of BTC.
According to Tesla’s Form 10-K filed with the United States Securities and Exchange Commission (SEC), the “digital assets of the company are initially recorded at cost and are then revalued on the Consolidated Balance Sheet at cost, net of any loss. of value incurred since the acquisition. Tesla explained that it performs an analysis every quarter to identify depreciation, adding: “If the carrying value of the digital asset exceeds the fair value based on the lowest price quoted on active exchanges during the period , we will recognize an impairment loss equal to the difference in the consolidated statement of income.
While Tesla never disclosed how many bitcoins he owned, CEO Elon Musk revealed in July that the amount was close to 42K BTC. At the time of writing, the price of bitcoin is $ 63,053.60. It broke historic highs on Wednesday after the launch of the first bitcoin exchange-traded fund (ETF) in the United States. This means that Tesla’s bitcoin stash is currently worth around $ 2.65 billion.
Wednesday, Musk tweeted a meme showing the price of bitcoin at $ 69,000 and the price of ether at $ 4.2,000.
Musk has long been a believer in crypto. He revealed in July that in addition to bitcoin, he personally owned “some ethereum and dogecoin.” Tesla’s executive said, “In general, I’m a bitcoin fan,” noting that the BTC he owned was worth “a lot more than Ethereum or Doge.”
In September, Musk said governments should not try to control or regulate cryptocurrencies, stressing that regulators should “do nothing” about crypto.
What do you think of Tesla’s bitcoin holdings and Elon Musk’s tweet? Let us know in the comments section below.
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