Tesla has been controversial in the crypto world as its Bitcoin (BTC) holdings dumped about 75%, which triggered reactions that the company’s BTC bet was a fiasco, despite CEO Elon Musk’s claims that the bet is in “diamond hands” last year. On the contrary, a filing revealed that Tesla was able to profit from its BTC sale, according to ZyCrypto.
Impressively, Tesla was able to generate $68M in profit from periodic conversions of BTC to fiat despite an impairment loss of $170M due to certain market changes that affected BTC’s value from the beginning of 2022 to June 30, 2022, as revealed by the company’s Form-Q filing with the U.S. Securities and Exchange Commission (SEC) for the second quarter of 2022. Aside from this, the firm stated that in the six months preceding June 30, 2021, it generated gains of $128 million from converting its digital assets to fiat.
With that baing said, Tesla may buy or sell more digital assets. According to the firm, “As with any investment and consistent with how we manage fiat-based cash and cash equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of market and environmental conditions.”
Despite the 75% dump of Tesla’s BTC holdings which caused concerns among the crypto community, CEO Elon Musk explained that selling part of its BTC holdings is not inclined with its outlook on Bitcoin but was solely a strategy to improve its Cash Flow situation.
As of now, Tesla still holds 10,800 BTCs on its bank sheet, according to Bitcoin Treasuries’ data. That being said, it is safe to assume that the crypto community may witness another Tesla’s sale or purchase of more digital assets in the future.
