Tesla’s impairment losses on Bitcoin revealed. In a SEC filing on Monday morning, Tesla revealed that it had incurred valuation impairment losses of $101 million on its Bitcoin holdings in 2021.
At the end of 2017, Tesla had a Bitcoin value of $1.99 billion, according to the company. The firm invested $1.5 billion in cryptocurrency at its peak in the first quarter of this year.
Tesla’s impairment losses revealed in the SEC filing
In the SEC filing, the company said it continued to “believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash.”
Tesla also said that it may increase or decrease its digital assets “at any time” depending on the demands of the company and its view of market and environmental trends.
Tesla became the most significant firm — in terms of market capitalization — to invest in Bitcoin.
Tesla loves crypto: Bitcoin & Dogecoin
Tesla Motors, the electric carmaker, accepted Bitcoin on its website for a limited time but then withdrew it due to concerns about the environmental impact of Bitcoin. Also, Musk is a major Dogecoin bull and Tesla recently began accepting the meme cryptocurrency on its store.
SEC delays Bitcoin ETF again
Dogecoin mining is based on scrypt technology, making it more energy-efficient than bitcoin and dogecoin. Both Bitcoin and Dogecoin use proof-of-work consensus protocols in their networks, but Dogecoin mining is carried out using scrypt technology, which makes it less energy-consuming.
In the pre-market session on Monday, Tesla shares fell 0.5 percent to $918.81, while Bitcoin rose 2.8 percent to $42,706.85.
