The company gained $64 million in profits from the recent conversion of bitcoin to fiat currency.
Tesla Inc. submitted its second-quarter earnings report to the Securities and Exchange Commission (SEC) on Monday.
As CoinGabbar News reported last week, the company revealed that it converted around 75% of its bitcoin assets into fiat currency. The BTC conversion adds $936 million of cash to the balance sheet of the electric car manufacturer.
Tesla informed the SEC that in the second quarter, “we incurred $170 million in impairment losses due to changes in the carrying value of our bitcoin and $64 million in profits on some bitcoin conversions into fiat currency by us.”
Tesla initially acquired $1.5 billion worth of bitcoin in the first quarter of 2021. During the same quarter, the company sold $272 million worth of BTC. In the first quarter of 2021, the price of bitcoin ranged between $32K and $59K.
According to the SEC filing, the electric car manufacturer earned $128 million from converting its BTC into fiat currency in the first quarter of 2021. Furthermore, the company suffered $23 million and $50 million in bitcoin impairment losses in the second quarter of 2021 and the first half of 2021, respectively.
Tesla explained in its SEC statement on Monday that it purchased $1.5 billion in bitcoin in the first quarter of 2021. Furthermore, it got an insignificant amount of digital assets throughout the first half of this year as well.
While Tesla did not specify which other crypto assets it holds, the company has been accepting the meme cryptocurrency dogecoin (DOGE) for some merchandise since January.
As per Tesla's balance sheet, the carrying value of its digital assets held at the end of Q2 was $218 million. According to the company, “the fair market value of such digital assets owned as of June 30, 2022, was $222M.”
On June 30, the price of Bitcoin was holding around $20K after momentarily dipping to $18,784. According to CoinGabbar, BTC is currently trading at $21,174, decreased 3.57% in the last 24hrs, at the time of writing.
Tesla CEO Elon Musk stated during the company's Q2 earnings call last week that the company sold the majority of its BTC due to worries about the company's overall liquidity in light of Covid shutdowns in China. Noting that Tesla has not sold any dogecoin, Musk stated, "We are very open to growing our bitcoin holdings in the future," emphasizing that "this should not be interpreted as a judgment on bitcoin."
Read also: Top cryptocurrency news: Tesla sold 75 percent of its Bitcoin holdings in Q2
