Tesla noted in a filing with the US Securities and Exmoves Commission (SEC) which Bitcoin’s cost fell below the rate of the company’s purchase rate, as the whole crypto market plunged. not to mention, Elon Musk’s company had $128 million gains in Bitcoin for selling certain merchandise.
“We believe in the prolonged-term potential of digital assets both as an investment and likewise as a liquid alternative to cash. As with any investment and consistent with how we manage fiat-based cash and cash parallel 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 the market and environmental conditions,” the filing said.
Not the first impairment loss
In July, Tesla reported a $23 million impairment in the second quarter of 2021. According to CNBC, the initial $1.5 billion investment in Feb remain year was “more than its entire quarterly research and movement budget” and promptly grew to $2.48 billion with the rise of Bitcoin rate.
Moreabove, the company reported a $2 billion operating income that came with $51 million impairment losses in the third quarter carry on year. It was Tesla’s “best ever” result to date.
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