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Tesla didn’t get left behind and announced on February 8 that it has bought $1.5 billion worth of bitcoin. The US Securities and Exchange Commission was informed of the cryptocurrency purchasing spree in a filing.
Tesla said that the acquisition was a part of its recently revised investment portfolio, which the company’s audit officers approved.
The value of Bitcoin has since dropped by more than half. On June 30, the final day of Tesla’s second fiscal quarter, Bitcoin was trading at $19,000. Furthermore, at the time of writing, the price of Bitcoin was $19,735, a 0.5 percent decline from the previous week.
Tesla Bitcoin Investments Losing Value Lately
Tesla’s Bitcoin holdings have drastically decreased recently. Tesla’s BTC holdings decreased by $440 million in the second quarter of 2022’s financial report as a result of the ongoing bear market.
Due to the erratic cryptocurrency market price, Tesla’s BTC investment was down to about $820 million by the end of June.
Three months ago, Tesla placed a $1.26 billion value on its Bitcoin. Despite having over $2 billion worth of cryptocurrency in its BTC coffers, the company doesn’t realize any earnings until it sells its electric car due to its accounting procedures.
This suggests that the Austin, Texas-based automaker would probably write down around $440 million, or about 9% of projected 2021 sales, of its Bitcoin holdings.
This Year, Bitcoin Is Losing Its Glimmer
Bitcoin has had a terrible year since the start of the current fiscal year. The recurring drops have also had an effect on other cryptocurrencies, like Ether, Dogecoin, and Litecoin, to mention a few.
At the start of the year, Bitcoin was selling for almost $46,000, but since then, its value has dropped significantly. The price of Bitcoin has decreased by nearly 75% since it peaked in November of last year.
Among the businesses that have converted some of their cash reserves into bitcoin are MicroStrategy and Block Inc.
Numerous businesses with Bitcoin-based wagers suffered on June 19 when the price of Bitcoin sharply dropped to $17,700.
Due to a catastrophic crypto crisis that some sectors think may only be getting started, more than $2 trillion has been wiped from the market price of all cryptocurrencies in only the past six months.
Tesla shares were now trading in extended session at $679.80 per share as of this writing. The price is currently about 0.30 percent less than when it last closed at $681.79.
