Close Menu
    X (Twitter)
    Blockchain Journal
    • News
      • Blockchain News
      • Bitcoin News
      • Ethereum News
      • NFT
      • DeFi News
      • Polkadot News
      • Chainlink News
      • Ripple News
      • Cardano News
      • EOS News
      • Litecoin News
      • Monero News
      • Stellar News
      • Tron News
      • Press Releases
      • Opinion
      • Sponsored
    • Price Analisys
    • Learn Crypto
    • Contact
    • bandera
    Facebook X (Twitter) Instagram
    Blockchain Journal
    Home » Tesla Earns $64M Profit from Bitcoin Trading

    Tesla Earns $64M Profit from Bitcoin Trading

    0
    By qaasim on February 1, 2023 Bitcoin News, Cryptocurrencies
    tesla
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The electric vehicle producer Tesla has recorded $64 million profit from Bitcoin trading in 2022 alongside $140 million Bitcoin (BTC) net loss according to a Jan 31 filing with the U. S. Securities and Exchange Commission (SEC).

    Tesla reported that it recorded a total of $204 million gross impairment loss in 2022 as a result of its Bitcoin holdings. In the same vein, it made a $64 million profit by converting BTC into fiat currency during the period. 

    As a result, its net loss was reduced to $140 million due to cryptocurrency trading activities. The company, however, explained the influence of volatile crypto prices on Tesla’s bottom line as follows:

    “Digital assets are considered indefinite-lived intangible assets under applicable accounting rules. Accordingly, any decrease in their fair values below our carrying values for such assets at any time after their acquisition will require us to recognize impairment charges, whereas we may make no upward revisions for any market price increases until a sale. For any digital assets held now or in the future, these charges may negatively impact our profitability in the periods in which such impairments occur even if the overall market values of these assets increase.”

    Drawing from the foregoing, Tesla supposedly stopped accepting Bitcoin as a means of payment in 2021 due to its high volatility. Although the decision was justified by Tesla CEO Elon Musk on the basis that Bitcoin uses highly fossil fuels for Bitcoin mining and transactions.

    elbtc

    Tesla’s Investment in Bitcoin

    Following the initial acceptance of Bitcoin as a means of payment by Tesla, the company later liquidated 75% of its Bitcoin holdings worth $936m in the second quarter of 2022 having stopped receiving Bitcoin. 

    Meanwhile, the digital asset transaction was justified by Telsa’s CEO Elon Musk that the step was taken due to problems with car production in China. 

    Recall that Tesla’s investment in BTC reportedly yielded more than $1 billion in profits in 2021 according to analysts from American investment firm, Wedbush Securities, Daniel Ives and Strecker Backe.

    While the company has been relatively silent on its crypto investment stance, its support and eventual adoption of Dogecoin (DOGE) as a means of payment for Tesla’s products had positively impacted the memecoin.

    Bitcoin Elon Musk Featured Tesla
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    qaasim
    • X (Twitter)

    Salaam Rasak entered the crypto space while completing his Masters degree and has continued to dig deep into Web3 space since then, writing articles related to Web3 and blockchain. He started working with Blockchain Journal in September 2022.

    Related Posts

    Ethereum ICO whale stakes 150,000 ETH ($646M) after three years of inactivity, reducing supply and signaling confidence

    September 5, 20253 Mins Read

    Solana pulls back after profit taking near the $210–$212 barrier

    September 5, 20253 Mins Read

    Ether leads crypto market decline amid ETF outflows, whale accumulation, and regulatory uncertainty

    September 5, 20253 Mins Read

    Historic wallet awakens: 479 BTC (52 million USD) moved after 13 years

    September 5, 20253 Mins Read

    World Liberty Financial Blocks Justin Sun’s Wallet Amid WLFI Controversy

    September 5, 20253 Mins Read

    XRP hangs on the hope of a short squeeze amid a stalemate between buyers and sellers

    September 4, 20253 Mins Read

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    © 2025 Blockchain Journal

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.