Tesla announced it recorded $170 million of impairment losses on its Bitcoin investment.
This loss relates to the first nine months of this year. Tesla also reported gains of $64 million “on certain conversions of bitcoin into fiat currency by us.”
In February last year, Tesla announced it bought $1.5 billion in Bitcoin to provide “more flexibility” as well as to “further diversify and maximize returns on our cash.”
Tesla then sold 75% of its BTC holdings in the second quarter of this year. In a recently presented Q3 earnings report, Tesla said it did not buy or sell Bitcoin. The value of Tesla’s digital assets remained at $218 million.
“For any digital assets held now or in the future, these charges may negatively impact our profitability in the periods in which such impairments occur even if the overall market values of these assets increase,” Tesla added in a filing.
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