Tesla records $204 million loss on its bitcoin holdings in 2022, according to regulator Filing. The loss was offset by $64 million in profits from bitcoin trading, leaving the automaker with a net loss of $140 million.
Tesla invested $1.5 billion in Bitcoin in the first quarter of 2021, saying it believed in the cryptocurrency’s longevity. At the time, the company said that bitcoin was the best place to store cash and still have instant access to it, while offering a better return on investment than most traditional central banks. In fact, after its initial purchase, Tesla immediately trimmed its position by 10%, making the automaker a quick $101 million.
In March 2021, CEO Elon Musk said that Tesla would start accepting Bitcoin as payment for Tesla vehicles, which would cause the crypto’s price to soar. A few weeks later, Musk and Tesla backed off on that decision, citing concerns over the amount of energy needed to mine bitcoin. The value of Bitcoin subsequently plunged.
Last year, as the price of Bitcoin began to fall, Tesla sold 75% of its Bitcoin holdings and used the proceeds to buy traditional currencies. The automaker owns roughly $184 million worth of bitcoin today, and may be holding out for a rebound.
The crypto market has experienced a dramatic decline over the past year. Today, Bitcoin is trading at $23,045.50, which is about 66% below its all-time high of $68,789.63. Despite losing more than half the value, Some experts say Bitcoin remains resilient and may experience a comeback, especially as buyers scared of the crypto market gravitate towards household names and more mature ecosystems like Bitcoin or Ether.
Tesla dismissed its press department and could not be reached for comment.