US-based crypto exchange Kraken has announced plans to expand its products with intention to expand globally too.
Despite the cryptocurrency’s current bear market, Tesla’s sale of the majority of its Bitcoin has brought the tech company a massive profit. In the second quarter of the year, Tesla sold 75% of its Bitcoin holdings for fiat current – bringing the company a sum of over $60 million USD.
As per a form with the United States Securities and Exchange Commission, in the first half of the year, Tesla was looking at $170 million USD in impairment losses as a result of its Bitcoin holding. An impairment loss is seen when the fair value of a company’s held asset goes below the carrying value of its investment.
After selling the majority of its crypto, it took in a realised gain of $64 million USD. In the second quarter, Tesla recorded $2.27 USD per share in its earnings, banking the tech company $16.93 billion USD in revenue. A year ago, Tesla’s profit was higher than it is now, but over the first quarter, the company’s profit was looking at a decline. This is as a result of rising inflation in the United States and a rise in industry competition – affecting the company’s growth rate and profitability.
Does Tesla have Bitcoin on its books?
While Tesla sold the majority of its Bitcoin holdings in 2022, selling 75% of its crypto holdings, the firm still has 10,800 Bitcoin on its books. At the time of writing, this puts Tesla’s Bitcoin holdings at over $235 million USD.
The company has made no announcement or public statement about whether it plans to buy more Bitcoin or sell any of its currency holding. It did allude to the fact that it might change the current state of its crypto investment depending on market conditions, however. As per Tesla:
“As with any investment and consistent with how we manage fiat-based cash and cash equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of market and environmental conditions.”