Elon Musk ‘s car brand revealed that its investment in cryptocurrencies fell by 140 million dollars during 2022.
Due to the chaotic 2022 in the cryptocurrency market , Tesla , Elon Musk ‘s car company , lost 140 million dollars for buying bitcoin .
According to reports filed with the Securities and Exchange Commission, the company claims that it lost nearly 10% of its cryptocurrency investments over the past year.
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When the company revealed that it had bought bitcoins, the virtual currency was valued at $45,000. Today, it is worth $23,000.
In all, Tesla says it actually recorded $204 million in “impairment losses” on bitcoin last year, though it was able to recover about $64 million by exchanging it for “real money.”
Months after revealing Tesla ‘s initial crypto investment , Musk announced that his company would begin accepting payments for vehicles in bitcoin . At the time, Musk told customers interested in obtaining a Tesla with cryptocurrency that ” bitcoins paid to Tesla will be held as bitcoins ” and would not be converted into fiat currency. It’s unclear if the bitcoin Tesla recently converted included any paid for by customers.
However, after months they stopped accepting bitcoins because the cryptocurrency was heavily contaminating the entire planet.
“ Cryptocurrency is a good idea on many levels and we think it has a bright future, but this can’t come at a huge cost to the environment,” Musk wrote on Twitter.
Investments in crude oil
The company, at the behest of CEO Elon Musk, bought the cryptocurrency worth 1.5 billion during 2021.
Last year, following its second-quarter earnings reports, Tesla said it had converted 75% of its bitcoin holdings into dollars , ultimately allowing the company to raise an additional $936 million in cash.
Bitcoin prices soared to all-time highs in 2021 when Tesla announced its huge investment. By contrast, Bitcoin prices suddenly plunged 15% immediately after Musk canceled Bitcoin purchases.