Tesla's Bitcoin Holdings Value Hasn't Changed in the First Quarter

Tesla's bitcoin holdings value has not changed and remains at $1.26 bln for the second straight quarter, the electric car maker said in a report on Wednesday. In both the first quarter and the fourth quarter of last year, Tesla did not buy or sell bitcoin, and did not record any decline in the value of its holdings, as the price of bitcoin remained unchanged from the end of the previous quarter.

In the third quarter of last year, Tesla did not increase or decrease its bitcoin holdings, but reported a $51 mln impairment to reflect the decline in the price of the cryptocurrency. According to digital asset accounting rules, if the price of an asset falls during a quarter, a company must report an impairment. But if the price increases, it does not appear on the balance sheet as profit unless the asset is sold.

Tesla announced in February that it bought $1.5 bln worth of bitcoin. Later in the first quarter, the company cut its bitcoin holdings by 10%, boosting quarterly earnings by $272 mln. Tesla did not buy or sell bitcoin in the second quarter.

Image: CriptoNoticias