Is Tesla’s Bitcoin Liquidation Impacting The Crypto Market?

Tesla just released its Q2 earnings report. According to the report, the company sold $75% of its Bitcoin (BTC) assets, for a total of around $936 million.

Additionally, due to changes in the carrying value of its cryptocurrency assets, Tesla recorded $170M in impairment losses for the six months that ended on June 30, 2022. For the same, the company saw gains of $64 million. However, for the six months that concluded on June 30, 2021, Tesla realized gains on the conversion of their digital assets of $128 million.

The company transferred 75% of its holdings into fiat, according to the statement. It does not, however, specify which crypto it is referring to. As Tesla was the second-largest currency holder, it is likely that the majority of digital assets were Bitcoin. elon musk elon musk Elon Musk is a well-known entrepreneur and inventor, widely recognized for his role in founding or leading several major companies, including Tesla, SpaceX, Neuralink, and The Boring Company. He’s also known for his ambitious goals around space exploration, electric vehicles, and the future of humanity. Musk is often a polarizing figure, admired for his innovation and vision, while also drawing criticism for his management style and controversial statements. The U.S. became the primary base for Musk’s career, and the tech scene in California played a significant role in shaping his professional trajectory.     Personal Info:Organization: Ledger.Location: United States.Graduation: Musk earned two bachelor’s degrees, one from the College of Arts and Sciences in Physics and another from the Wharton School of Business. In Economics    Experience: Zip2 Corporation, Co-founder X.com and PayPal Co-Founder & CEO SpaceX CDEO & Chief Engineer Tesla. Inc. CEO, Product Architect Neuralink co-founder, CEO The Boring Company Founder, CEO   NAsales@teslamotors.com EntrepreneurInvestorChief Executive Officer , the company’s CEO, did, however, affirm on Twitter that he had not sold any of the Dogecoin (DOGE) holdings.

According to Coindesk, tesla tesla - Automobile  Chief Financial Officer Zach Kirkhorn said, “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.”

For How Much did Tesla it Bitcoins?

According to the SEC filing, Tesla sold its Bitcoin or other cryptocurrency holdings before June 30. On the other hand, it is unclear exactly when Tesla sold their cryptocurrency.

Tesla bought its first bitcoins in the first quarter of 2021 for $1.5 billion but hid the average price paid. Later in the first quarter, the corporation sold a 10% portion of its holdings in bitcoin, increasing its earnings by $272 million. Until the most recent quarter, it hadn’t increased or decreased its stakes. 

Although the company withheld the selling price for its bitcoin in the second quarter, a quick calculation reveals that the average price would be roughly $29,000 per bitcoin, saving Tesla from having to take a significantly larger impairment charge. About $18,700 was the price of bitcoin at the end of the second quarter.