Tesla saw a net loss of $140 million on Bitcoin in 2022

• Tesla reported a gain of $64 million and an impairment loss of $204 million.
• The company revealed that it sold 75% of its bitcoin holdings, holding BTC worth about $184 million as of December 31, 2022.
• The electric car maker bought $1.5 billion worth of bitcoin in 2021.

Tesla revealed that the company sold most of the bitcoins it bought in 2021, and took a significant loss in the digital assets it currently holds during the 2022 cryptocurrency crash.

In a Form 10-K with the U.S. Securities and Exchange Commission (SEC) on Tuesday, January 31, Tesla disclosed that it earned $64 million of its holdings in digital assets when converted to fiat currency.

However, according to the filing, the electric car maker’s Bitcoin bet also included an impairment loss of $204 million for the year ending December 31, 2022.

All of the gains posted for the year were offset by a net impairment loss, which resulted from Tesla’s move to restructure its operations around the asset. This means that the company recorded a net loss of $140 million in its cryptocurrency trading in 2022.

“During the years ending December 31, 2022 and 2021, we recorded impairment losses of $204 million and $101 million on these digital assets, respectively. During the years ended December 31, 2022 and 2021, we generated gains of $64 million and $128 million, respectively, related to the conversion of our holdings of digital assets into fiat currency.”, the company stated.

Tesla sold 75% of its bitcoin

Elon Musk’s company revealed that it had received or purchased “immaterial quantityof crypto last year. The tech giant splashed out $1.5 billion on buying Bitcoin in 2021.

As of December 31, 2022, Tesla has sold approximately 75% of its bitcoins. According to the filing, this left the company with about $184 million in digital assets as of the end of last year, down from $1.26 billion at the end of 2021.

While the fair market value of BTC held as of December 31, 2021 was close to $2 billion (after Bitcoin’s price skyrocketed to $69,000), the company’s total cryptocurrency holdings at the end of 2022 had a fair market value of about $191 million. .

Notably, this value could be much higher given the Bitcoin price is up nearly 40% since the beginning of the year. The company’s stock has also surged (think Bitcoin vs. Tesla stock comparison) over the past 30 days, with the TSLA index up nearly 56% year-to-date on Tuesday morning.