Tesla is currently holding bitcoin worth $1.26 billion on its balance sheet. Its third-quarter earnings report shows. The electric car company reported a bitcoin-related loss of $51 million in the quarter. Meanwhile, CEO Elon Musk tweeted a meme showing the price of bitcoin at $69K and ether at $4.2K.
Recently, Elon Musk’s electric car company, Tesla, released its third-quarter profits report. The company posted $13.757 billion in revenue, a 57% increase from the same period last year. It wrote: “The third quarter of 2021 was a record quarter in many respects. We achieved our best-ever net income, operating profit and gross profit.”
Tesla Financial Statements
Tesla’s balance sheet shows net digital assets of $1.26 billion as of Sept. 30. This is a drop-down from $1.311 billion at the end of the second quarter. Tesla reported a bitcoin-related impairment of $51 million in Q3.
Tesla’s cash flow statement still shows that the only BTC trade happened in the first quarter when the company bought bitcoin worth $1.5 billion and sold $272 million worth of BTC.
According to Tesla’s 10-K form filed with the U.S. Securities and Exchange Commission, the company’s “digital assets are recorded at cost. Then, they and are remeasured on the consolidated balance sheet at cost.” Tesla explained that it performs an analysis each quarter to identify impairment. Adding. “If the carrying value of the digital asset exceeds the fair value, we will see a loss equal to the variation in the consolidated statement of works.”
Tesla never disclosed how many bitcoins it owned. Yet, CEO Elon Musk revealed that the amount was close to 42K BTC in July. At the time of writing, the price of bitcoin is $$63,053.60. It surpassed all-time highs on Wednesday following the U.S.’ first listing of bitcoin ETF. This means Tesla’s bitcoin stash is currently worth about $2.65 billion.
On Wednesday, Musk tweeted a meme showing the price of bitcoin at $69K and the cost of ether at $4.2K.
Musk has long been a crypto proponent. He revealed in July that besides bitcoin, he owned “a bit of ethereum and dogecoin.” The Tesla executive opined. “In general, I am a supporter of bitcoin,” noting that the BTC he owned was “worth a lot more than ethereum or doge.”
In September, Musk said that authorities should not control or regulate cryptocurrencies. He stressed that regulators should “do nothing” about crypto.