In a recently shared report by Elon Musk-owned car manufacturing company, Tesla, it was seen that the company has faced a loss of $23 million due to Bitcoin. As Bitcoin crashed, Tesla being a major investor in the asset took a hit.
The electric car manufacturing company owned by billionaire Elon Musk, Tesla, recently released its quarterly earnings results.
Well, according to the data shared, it can be seen that the company has booked over $1 billion in profits for the very first time since the launch of the firm.
Though talking about the Bitcoin investments and their results, Tesla made $23 million in losses due to the crash in the crypto market in the second quarter of this year.
The report mentioned:
Tesla reportedly invested $1.5 billion in Bitcoin and hence booking a loss of just $23 million is considerably less.
In accordance with the US norms, the accountants must record the value of their cryptocurrency investments which means if the price of crypto assets goes up, and the company does not sell, nothing happens.
The need of recording the transactions only occurs when the company sells its holdings.
Back in the month of April, Elon Musk revealed investing a heavy amount in Bitcoin following his chat with Michael Saylor, the CEO of MicroStrategy.
As a result of this announcement, the BTC price jumped significantly and at that time, Tesla made a lot of money from Bitcoin, even more than its entire car production.
Later, Tesla announced that it is going to stop accepting payments in Bitcoin, which drove the price of Bitcoin down.