Tesla suffers losses amid falling bitcoin prices

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The recent sharp sell-off in Bitcoin from an all-time high of $ 64,800 to $ 29,100 could result in a $ 100,000,000 devaluation of Tesla’s BTC assets in the second quarter.

 

Tesla faces a so-called depreciation penalty. The company classifies cryptocurrency as “intangible assets”, so according to accounting rules, when the value of bitcoin falls below a certain amount, companies should note this in their financial statements …

The analysts I spoke to expect Tesla to lose between $ 25 million and $ 100 million in the next quarter, a CNBC correspondent said.

 

Tesla made headlines in February after announcing a $ 1.5 billion investment in bitcoin.In April, the company sold $ 101 million worth of coins to prove bitcoin had sufficient liquidity.

In the future, Elon Musk stated that he had no intentions to sell the rest of the bitcoin assets.

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