Tesla Records $64 Mln Gain On Bitcoin Sales In Q2

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Luxury electric car maker Tesla Inc. (TSLA) recorded gains of $64 million on the sale of 75% of its bitcoin holdings in the second quarter. The company also recorded an impairment of $170 million on its remaining holdings, according to its 10-Q filing with the Securities and Exchange Commission on Monday.

In the first six months of 2022, Tesla recorded $170 million of impairment losses "resulting from changes to the carrying value" of its Bitcoin holdings, the 10-Q filing states. After selling 75% of its bitcoin for fiat currency in the second quarter, the company realized a gain of $64 million.

The 10-Q filing filled details on information provided during Tesla's quarterly earnings release and call last Wednesday.

While releasing its second-quarter earnings, the company said, "As of the end of Q2, we have converted approximately 75 percent of our Bitcoin purchases into fiat currency." Tesla said that those sales brought in $936 million in cash.

On the earnings call, Tesla Chief Financial Officer Zach Kirkhorn said the company "converted a majority of our bitcoin holdings to fiat for a realized gain, offset by impairment charges on the remainder of our holdings, netting a $106 million cost to the [Profit and Loss Statement] included within restructuring and other."

In early 2021, Tesla invested $1.5 billion in bitcoin, cashing in on what it believed was the digital currency's "long-term potential."

Tesla did not reveal the selling price for its bitcoin in the second quarter.

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