Tesla "confessed": buying Bitcoin, "lost" more than $100 million

Tesla, who is "intimate" with digital assets, was "hurt" by Bitcoin this time!

Recently, in the 10-K annual report filed with the U.S. Securities and Exchange Commission (SEC), Tesla disclosed the “price” of owning Bitcoin: because of the fluctuation of the Bitcoin market price, it had accrued $101 million for the whole year of last year. impairment loss.

Regarding digital assets including Bitcoin, Tesla also has the latest statement in the document - "believes in the long-term potential of digital assets as an investment and a substitute for liquid cash."

Tesla has a deep relationship with Bitcoin, and its series of statements and actions are closely related to the trend of Bitcoin. There is no shortage of "love and kill" plots between market interactions.

However, from the current point of view, the bursting of the Bitcoin bubble is inevitable. As of press time, the latest price of Bitcoin is US$42,773.1. Although it has rebounded from the previous low, it has clearly "died away" compared to last year's high. Several experts have recently stated that Bitcoin may enter a recession in the next few years.

Provision for impairment losses of approximately US$101 million

According to Tesla’s 10-K filing with the SEC, for the year ended Dec. 31, 2021, an impairment loss of approximately $101 million was accrued due to changes in the company’s bitcoin book value.

Tesla said in the filing that as of December 31, 2021, the book value of its digital assets held was $1.26 billion, reflecting a cumulative impairment of $101 million. As of December 31, 2021, the fair market value of such digital assets held was $1.99 billion.