Tesla lost $440 million on the fall of bitcoin

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Tesla, an electric car maker, suffered a $440 million loss on reserves due to the fall in the price of bitcoin. On this drew attention edition of The Telegraph.

As of the start of Q2, Tesla had ~$1.26 billion in bitcoin. The fall in the cryptocurrency market has devalued these investments by $440 million, which is equivalent to 9% of Tesla’s annual profit in 2021. The electric car maker now has only ~$820.8 million in bitcoin.

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In early 2021, Tesla injected $1.5 billion into bitcoin. In the second quarter of that year, the company sold about 10% of its bitcoin holdings, boosting its profits for the quarter by $272 million. According to Bitcointreasuries, the company still owns approximately 43 200 BTC. Thanks to the rise of bitcoin in 2021, Tesla recorded an unrealized profit of $1.3 billion, but never got rid of the assets.

Meanwhile, Tesla CEO Elon Musk thinksthat Tesla needs to cut about 10% of its workforce as newly opened factories in Berlin and Texas are burning huge sums of company money. Musk had previously warned that a recession would sweep the markets “in the very near future.”

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The capitalization of the cryptocurrency market has fallen below the $1 trillion mark. Bitcoin is trading below $20,000 at the time of writing, below the 2017 high. At the same time, the market dominance of bitcoin is still significant and amounts to just over 42%.

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Source: Cryptocurrency

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