Bitcoin’s fall has also cost Tesla dearly. In 2022, the automaker lost no less than $204 million following the cryptocurrency crash. A sum that the latter failed to recover by selling almost all of its assets.
Remember: in 2021, Bitcoin is on the rise. Cryptocurrency is skyrocketing , everyone wants their piece of the pie and Elon Musk, through Tesla, is no exception. While the craze is at its height within the community, the manufacturer announces to buy for 1.5 billion dollars of Bitcoin . The reaction is instantaneous: the currency sees its value climb in stride.
A year later, the landscape has darkened slightly. The year 2022 has been catastrophic for Bitcoin and more generally for all cryptocurrencies and their followers. Tesla had also felt the tide turn since, shortly after announcing to accept payments in Bitcoin, the company had already backtracked. But that wasn’t enough to avoid the wall.
The fall of Bitcoin has cost Tesla dearly
In a document provided by Tesla, we learn that Elon Musk’s firm lost no less than 204 million dollars , or around 187 million euros, as a result of the 2022 cryptocurrency crash. Over the summer, Tesla sold a large chunk of its digital assets , resulting in a profit of $64 million. The net loss is then $140 million .
If this figure is rather substantial, it should also be noted that Tesla has visibly managed to limit the damage. In June 2022, the company recorded losses of $ 600 million related to Bitcoin. To date, Tesla still holds $184 million. Like many experts, the manufacturer may still believe in a renaissance of cryptocurrency in the years to come. The opportunity to recall that at the time of writing, Bitcoin is valued at 21,120 dollars , a far cry from its historic peak at 68,789 dollars.
Source : TechCrunch