{"id":17142,"date":"2023-02-01T04:06:21","date_gmt":"2023-02-01T04:06:21","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/teslas-sec-filing-shows-bitcoin-fair-market-value-of-191-million-featured-bitcoin-news\/"},"modified":"2023-02-01T04:06:21","modified_gmt":"2023-02-01T04:06:21","slug":"teslas-sec-filing-shows-bitcoin-fair-market-value-of-191-million-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/teslas-sec-filing-shows-bitcoin-fair-market-value-of-191-million-featured-bitcoin-news\/","title":{"rendered":"Tesla’s SEC Filing Shows Bitcoin Fair Market Value of $191 Million \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Tesla\u2019s latest filing with the U.S. Securities and Exchange Commission (SEC) shows that the fair market value of the company\u2019s bitcoin holdings was $191 million at the end of 2022. In addition, billionaire Elon Musk\u2019s electric car company recorded $204 million of impairment losses resulting from changes in the prices of bitcoin.<\/strong><\/p>\n

Tesla\u2019s Digital Assets and Its Bitcoin\u2019s Fair Value<\/h2>\n

Elon Musk\u2019s electric car company, Tesla (Nasdaq: TSLA), filed its annual report for the year ended Dec. 31, 2022, with the U.S. Securities and Exchange Commission (SEC) on Monday.<\/p>\n

The filing shows that the fair market value of Tesla\u2019s BTC<\/a> holdings was $191 million at the end of 2022 while their carrying value was $184 million, as Bitcoin.com News previously reported<\/a>. \u201cAs of December 31, 2022, and 2021, the carrying value of our digital assets held was $184 million and $1.26 billion, which reflects cumulative impairments of $204 million and $101 million, each period, respectively,\u201d the company detailed, elaborating:<\/p>\n

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The fair market value of such digital assets held as of December 31, 2022 and 2021 was $191 million and $1.99 billion, respectively.<\/p>\n<\/blockquote>\n

The filing also notes that during the two years ended Dec. 31, 2022, Tesla \u201cpurchased and\/or received an immaterial amount and $1.50 billion, respectively, of digital assets.\u201d<\/p>\n

The electric car company invested $1.5 billion in bitcoin in Q1 2021 but sold 75%<\/a> of its holdings in Q2 2022. The company also accepts the meme cryptocurrency dogecoin (DOGE) for some merchandise, which accounted for an \u201cimmaterial amount\u201d of digital assets as stated in the SEC filing.<\/p>\n

Tesla\u2019s $204 Million in Impairment Losses From Bitcoin<\/h2>\n

The electric car company explained that digital assets are considered \u201cindefinite-lived intangible assets under applicable accounting rules.\u201d Therefore, \u201cany decrease in their fair values below our carrying values for such assets at any time subsequent to their acquisition will require us to recognize impairment charges,\u201d Tesla described, adding:<\/p>\n

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In the year ended December 31, 2022, we recorded $204 million of impairment losses resulting from changes to the carrying value of our bitcoin and gains of $64 million on certain conversions of bitcoin into fiat currency by us.<\/p>\n<\/blockquote>\n

Since its BTC<\/a> acquisition, Tesla only sold its bitcoin once, which was in the second quarter of 2022. The company sold 75% of its bitcoin holdings<\/a> which added $936 million in cash to its balance sheet. CEO Elon Musk explained at the time that the company is \u201ccertainly open to increasing our bitcoin holdings in [the] future,\u201d noting that the sale was due to concerns about the company\u2019s overall liquidity, \u201cgiven Covid shutdowns in China.\u201d<\/p>\n

Tesla\u2019s SEC filing also states:<\/p>\n

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We may increase or decrease our holdings of digital assets at any time based on the needs of the business and our view of market and environmental conditions.<\/p>\n<\/blockquote>\n

Do you think Tesla should buy more bitcoin? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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