Tesla Announces $64 Million Profit From Bitcoin Sale

Elon Musk's electric vehicle company sold 75% of its BTC in Q2. The company's overall profitability has been affected by inflation and competition for battery cells.

Tesla's decision to offload most of its Bitcoin (BTC) treasury earned the company a sizable profit in the second quarter, even as crypto prices plunged in a bear market.

In the first six months of 2022, Tesla recorded $170 million in impairments “resulting from changes in the book value” of its Bitcoin holdings, according to an official Form 10-Q filing with the United States Securities and Exchange Commission, or SEC. After selling 75% of its BTC stash for dollars in Q2, the company made a realized gain of $64 million.

In finance, an impairment loss occurs when the fair value of an asset held by a business falls below the book value of the investment.

If you sell 75% of your bitcoins, you will only have 25% of your #bitcoins left.

Tesla posted earnings of $2.27 per share in the second quarter on revenue of $16.93 billion. Although profitability is down from the first quarter, it is up from levels a year ago. However, the company's profitability has been affected by rising inflation and growing competition for battery cells.

The electric vehicle maker still has 10,800 BTC on its books, according to Bitcoin Treasuries. At a current price of around $22,000 BTC, Tesla's digital holdings are worth around $237 million.

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