Tesla’s digital assets did not increase or decrease in value during the second quarter, as it maintained $184 millions on its balance sheets.
The value of the holdings, as of June 30, stayed flat — despite bitcoin’s price rise during the quarter — due to accounting rules that don’t allow for unrealized gains on crypto to be recorded.
Price of bitcoin increased by roughly 7% over the course of the second half of 2016, contributing to an 80% increase in value year-todate.
Tesla bought $1.5 Billion worth of Bitcoin in February 2020. Elon Musk, the CEO, announced that the company would accept bitcoin as payment. However, Elon later changed his mind, citing the environmental issues.
Musk’s firm sold approximately 75% of the bitcoin it had in its stack by the end of the second quarter 2022, bringing the value of the digital assets to $218,000,000.
“We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as some verdict on bitcoin,” Musk spoke during the call to discuss earnings for July 2022.
In the fourth quarter that same year, Tesla reduced its digital asset portfolio from $218 millions to $184million. Tesla maintained this level in the fourth quarter of 2022, and for the first three month of 2023.
The financial statements for Wednesday’s second quarter show that these investments remained the same.
Musk is a fan of the dogecoin cryptocurrency (DOGE). He even changed Twitter’s official logo in April to reflect this.
Keith Johnson, a shareholder from the United States filed a $258 million lawsuit in June of 2022 against Musk. Johnson alleged that Musk was involved in a DOGE price manipulation scheme. Musk’s legal team has said that tweeting in support of a crypto-asset with a $10 billion market cap as of last Wednesday isn’t illegal.
Musk broke his silence about cryptocurrency during the Wall Street Journal’s CEO Council Summit, held in May.
“I’m not advising anyone to buy crypto or bet the farm on dogecoin,” Musk has said.
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