Tesla Reveals Its Bitcoin Holdings and BTC Sale Profit

cryptonews.com:

The electric car maker Tesla has revealed that it still holds digital assets worth approximately USD 222m, after saying last week that it had sold 75% of the bitcoin it held on its balance sheet. The company has posted a USD 64m gain on the sale.

The new details of Tesla’s latest bitcoin (BTC) sale and remaining holding came in a filing with the US Securities and Exchange Commission (SEC) on Monday.

According to the filing, the sale netted Tesla a total of USD 936m for the second quarter. The company also recorded an impairment of USD 170m on its remaining holdings.

As of June 30 this year, the company held digital assets with a “fair market value” of USD 222m, the filing said. It did not specify whether all of the digital assets it held are in bitcoin, but it is assumed that the vast majority of it is.

Tesla executives have revealed that the company also holds some dogecoin (DOGE), although it never announced that it purchased the meme coin. The company does, however, accept DOGE as payment for some of its merchandise.

The details of the bitcoin sale revealed in the filing are in line with comments from Tesla’s chief financial officer Zachary Kirkhorn given during the company’s earnings call for the second quarter, when he said Tesla had sold 75% of its bitcoin “for a realized gain.”

During the same call, CEO Elon Musk reassured the market that the sale had nothing to do with a loss of confidence in bitcoin, but said it came because the company wanted a stronger cash position. He added that Tesla is “certainly open” to increasing its bitcoin position again in the future.

Tesla originally bought USD 1.5bn of bitcoin during the first quarter of 2021. The company then reduced its bitcoin holding by 10%, netting a USD 272m gain.