Tesla's strong second-quarter profits, which showed a 42 percent increase in revenue, were offset by a $170 million impairment charge due to the collapse in bitcoin prices. According to information from Bitcoin Treasuries, Tesla spent $1.5 billion to purchase about 43,200 BTC during the first quarter of 2021. A quarter later, it sold 10% of its bitcoin for $272 million.

Those transactions were only an experiment to show the <a href="https://www.cryptoknowmics.com/news/uniswap-includes-sudoswap-to-have-access-to-deeper-nft-liquidity/" target="_blank" rel="noopener">liquidity</a> and value of bitcoin as an alternative reserve asset, Tesla's CFO Zach Kirkhorn said at the time, adding that Tesla's bitcoin investment was long-term. However, Tesla said last week that it made $936 million by selling 75% of its bitcoin during the second quarter of this year. As per the company's SEC filing,
<blockquote><em>"We may raise or decrease our holdings of digital assets at any moment based on the needs of the business and our perception of the market and environmental circumstances, consistent with how we handle fiat-based cash and cash-equivalent accounts."</em></blockquote>
According to accounting standards, digital assets are referred to as "indefinite-lived intangible assets." Tesla is, therefore, required to value its bitcoin at its lowest point during a quarter and report a loss if it falls below its purchase price. Similarly, Tesla may benefit from its digital assets if it makes a profit.
<h2>Tesla Reports $64 Million Profit</h2>
The manufacturer of electric vehicles reported a $64 million profit on specific BTC to fiat currency exchanges for the six months ended June 30, when the asset was worth about $19,000. Tesla reportedly sold 29,060 BTC at an average price of $32,209, leaving the business with around 9,700 BTC ($205.1 million) on its balance sheet, according to Arcane Research analyst Vetle Lunde.

According to statistics, the price of bitcoin last traded at $21,100 at 1:15 a.m. ET on Tuesday, down by 55 percent year to date. However, Varun Kumar, CEO of <a href="https://twitter.com/hashflow" target="_blank" rel="nofollow noopener">Hashflow</a>, believes that the key cryptocurrency asset may have struck its macro bottom at roughly $18,000.

Tesla Posts $170M Impairment Loss While Making $64M On BTC Sale

The strong second-quarter profits of Tesla were offset by a $170 million impairment charge due to the collapse in bitcoin prices.

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Tesla Posts $170M Impairment Loss While Making $64M On BTC Sale

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