Electric vehicle manufacturer Tesla recorded a $204 million impairment loss in 2022, said the United States Security and Exchange Commission.
Despite the loss, the company made a profit of $64 million from converting its bitcoin holdings to fiat currencies last year, Techcrunch reported citing the USSE commission.
Overall, the automaker lost $40 million from crypto trading activities, reports NDTV.
In the first quarter of 2021, Tesla had invested $1.5 billion in bitcoin and stated that it believed in the longevity of the cyptocurrency.
It said bitcoin was a great place to store cash and still access it immediately, providing a better return on investment than more traditional central banks. In fact, after its initial purchase, Tesla promptly trimmed its position by 10 per cent, making the automaker a quick $101 million.
Elon Musk in March 202 said that Tesla would start accepting bitcoin as payments for Tesla vehicles, causing the price of the crypto to boom. A few weeks later, Musk and Tesla backpedalled on that decision, expressing concern about the amount of energy needed to mine bitcoin.
The price of bitcoin then subsequently sank.
Bd-pratidin English/Golam Rosul
