Tesla recorded $23 million impairment connected to Bitcoin in Q2

Tesla published its earnings report for the second fiscal quarter of 2021 showing that the company's $23 million impairment related to Bitcoin holding value

Tesla’s balance sheet shows the electric motoring giant had $1.33 billion in digital assets which fell by 1.5% to $1,31 billion in the second quarter.

The company also revealed it hasn’t purchased any new digital assets in the second quarter after spending $1.5 billion in the first.

Tesla stated the $23 million impairment was related to the value of its Bitcoin holdings and it was all reported under “restructuring and other”. As of the end of March, the company revealed its initial $1.5 billion investment became worth $2.48 billion based on the Bitcoin jump in the first quarter.

The company also said it had $101 million of a net gain from sales of the biggest cryptocurrency in the first quarter and admitted it has helped net profit to grow to its record high.

However, the company does not account for Bitcoin as a mark-to-mark asset, meaning it only recognises it if it turns to overall profit.

Tesla added its revenue stood at $11.9 billion, beating analyst expectations and showing a 98% increase compared to the same period of last year. GAAP earnings per share soared by 920% year-on-year to $1.02.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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