Tesla has Lost Hundreds of millions of dollars on Bitcoin

Tesla reported a loss of $ 170 million due to bitcoins The American manufacturer of electric vehicles Tesla reported on its own website about the loss of hundreds of millions of dollars in transactions with bitcoins.

Tesla’s loss from the depreciation of bitcoin in the first half of 2022 amounted to $ 170 million. At the same time, the company received $ 64 million in profit from the sale of bitcoins on the balance sheet.

The need to record losses from the depreciation of cryptocurrencies in the financial statements is dictated by the accounting requirements of the US GAAP standard. At the same time, the company cannot recognize income from the increase in the current value of cryptocurrencies until their sale. Such rules negatively affect the financial result of Tesla.

Earlier in July, the founder and head of Tesla, Elon Musk, said that the company had sold off about 75 percent of its initial assets in cryptocurrency, estimated at $ 1.5 billion. The total sales amounted to 936 million, 64 million of which were reflected in the form of profit.

Musk also assured that the company remains open to future purchases of various cryptocurrencies and will not abandon this asset class.