This article was last updated on July 25, 2022
Bitcoin’s price drop has cost Tesla $170 million.
In the first half of this year, Tesla wrote down 170 million dollars (166 million euros) worth of bitcoins that the company possessed. Documents presented to the Securities and Exchange Commission (SEC) by an American electric car company make this clear.
When the firm released its quarterly financial results last week, it stated that it had taken a write-down in its books due to the decline in bitcoin’s value. However, the company has yet to reveal the exact sum.
It now seems to be a write-off of $170 million. This is because the value of the world’s most popular cryptocurrency, Bitcoin, has already dropped by roughly half this year. Under the direction of CEO Elon Musk, who is the richest person on Earth and a big fan of cryptocurrencies, Tesla has put a lot of money into bitcoin in the past.
Tesla said in February of this year that it had purchased $1.5 billion in bitcoins. A year ago, this was worth almost $2 billion, but the price of digital money has dropped significantly.