Tesla leaned hard into Bitcoin, purchasing $1.5B of the non-fiat currency in 2021. Since the time of Tesla's investment bitcoin's price has fallen dramatically, and it will be interesting to see how they treat this loss in their financial reporting.
Elon Musk's company had invested $1.5 billion in Bitcoin on February 8, 2021. This investment lost a lot of value as cryptocurrency prices plummeted. Bitcoin has fallen and is currently trading at its lowest level since December 2020.
Bitcoin is at $22,499.99, compared to $69,044.77 reached last November. In eight months, Bitcoin has lost 67.5% of its value.
This fall caused important losses to Tesla.
The value of the 43,200 bitcoins that the group has on its balance sheet is now only $968.103 million, according to Bitcoin Treasuries. Tesla has already lost around $530 million. It would therefore make sense for the vehicle maker to announce a depreciation charge related to this digital asset at least when announcing its second-quarter results in July.
