The electric car company Tesla sent a report to the United States Securities and Exchange Commission (SEC), where it reports losses due to the drop in Bitcoin in 2021 of USD $101 million.
In a recent Form 10-K filing, which is used to report the financial performance of a publicly traded company, Tesla revealed a $101 million loss on Bitcoin (BTC) investment.
During the first quarter of 2021 Tesla invested $1.5 billion in the first quarter of 2021.
In Tesla’s SEC filing report it says:
“We believe in the long-term potential of digital assets as an investment and also as a liquid alternative to cash. As with any investment and in accordance with the way we manage fiat-based cash and cash equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on business needs and our vision of the future. market and environmental conditions.
“For example, in the year ended December 31, 2021, we recorded approximately $101 million of impairment losses resulting from changes in the carrying value of our Bitcoin and gains of $128 million on certain sales of Bitcoin made by U.S”.
The report highlights the following:
“We continue to tailor our investment strategy to meet our liquidity and risk objectives, such as investing in US government and other marketable securities, digital assets, and providing product-related financing. In the first quarter of 2021, we invested a total of $1.5 billion in Bitcoin. The fair market value of our bitcoin holdings as of December 31, 2021 was $1.99 billion.”
At the same time, he reiterated:
“However, digital assets may be subject to volatile market prices, which may be unfavorable at times when we want or need to liquidate them.”
This report follows a balance that Tesla presented at the end of January and which showed that it had not sold a single one of the BTC that it owned during the last three quarters of the year 2021. The only BTC that it sold was in the first quarter of 2021, a small amount in relation to the USD $1.5 billion in BTC that he had bought. He did it to test his liquidity, he reported.
The report continues:
As of December 31, 2021, the carrying value of our digital assets held was $1.26 billion, reflecting cumulative impairments of $101 million. The fair market value of such digital assets held as of December 31, 2021 was $1.99 billion.