Tesla Faces Loss in Bitcoin Investment, Company Reports a $140 Million Loss in SEC Filings


Back in 2021, when Bitcoin adoption was at its peak, Tesla was among the companies that promoted its adoption. They were among the companies that helped bring Bitcoin to the mainstream market.

Tesla Adopted Bitcoin

The electric vehicle company reportedly announced back in 2021 that it would sell its vehicles to users accepting payments in Bitcoin (BTC).

This helped push the trading price of Bitcoin to higher levels. Due to the strong input from Tesla, the trading price of Bitcoin even hit an all-time high of $68k in November 2021.

Due to the strong input, the overall valuation of Bitcoin was pushed to $1.5 billion.

Bitcoin’s Value in February

In February 2021 when Elon Musk bought $1.5 billion worth of Bitcoin, he spent an average of $43,000 purchasing each Bitcoin.

However, the entire year of 2022 faced a major downfall. The situation got worse for the entire cryptocurrency industry and the value of Bitcoin ended up falling to a low of $15,600.

At that time, the company was confident that the value, as well as the valuation of Bitcoin, would continue surging. The valuation surge would be long-term and it would be the best alternative to fiat currencies.

With strong support coming from the (once) richest man in the world, the trading price of Bitcoin had managed to come closer to hitting $70k.

This is when the bearish market came into play and the situation turned ugly for Bitcoin. The asset reached its lowest levels and still, the asset is in the recovery phase.

Huge Loss Reported by Bitcoin

As of today, the trading price of Bitcoin is at a high of $23,133. It goes to show that the trading price of the asset is more than three times lower than what it was back in November 2021.

Initially, whenever Tesla submitted its filing at the US SEC, it mentioned that it had a positive stance towards Bitcoin.

It was confident that the value of the asset would surge but as the situation changed, Tesla changed its perception as well.

In a recent filing, Tesla announced that it is not optimistic about Bitcoin while mentioning that it had to sell $204 million worth of Bitcoin in 2022.

The company has confirmed that it reportedly faced $204 million worth of impairment loss in the year 2022.

Bitcoin is Resilient

Although Bitcoin has continued experiencing major downtrends, it has proven that it has the ability to remain resilient. The asset lost 70% of its all overall value but still, the asset is performing quite well.

Starting from 2023, the asset has started to perform quite well and the situation is still doing well for Bitcoin. Its price has recovered significantly and it may continue getting pushed higher in near future.