Tesla’s SEC Filing Shows Bitcoin Fair Market Value of $191 Million
Billionaire Elon Musk’s electric car company Tesla on Monday filed its annual report with the US Securities and Exchange Commission for the year ending December 30. The filing suggests that the true market value of Tesla’s bitcoin holdings at the end of 2022 was $191 million while its vehicle value was $184 million as stated in the report. The vehicle value of digital assets as of December 31, 2022 and 2021 was $184 million and $1.26 billion, representing losses of $204 million and $101 million in each period. The company detailed that the fair market value of digital assets held as of December 31, 2022 and 2021 were $191 million and $1.99 billion.
It was also noted in the filing that Tesla purchased and/or received an immaterial amount and $1.50 billion, respectively, of digital assets during the material years ended December 30, 2022. The car company invested $1.5 billion in bitcoin in Q2 2021 but sold its 75% stake in Q2 2022. The company also accepts the meme cryptocurrency Dogecoin for some merchandise, as well as an “intangible amount” of digital assets. Tesla’s $204 million loss from bitcoin came after the electric car company explained in a Securities and Exchange Commission final that the digital asset is treated as an indefinite intangible asset under all applicable regulations. . Tesla’s CEO said that any reduction of their fair value below the carrying values for such assets at any time after their acquisition would certainly require us to recognize an impairment charge. He further stated that for the year ended December 30, we recorded a loss of $204 million as a result of the change in the value of our bitcoins, as well as a $64 million gain on our definitive conversion of bitcoins and our bitcoin acquisitions. Since then Tesla has only sent its bitcoin once which was in the second quarter of 2022. The company shipped 75 percent of its bitcoin holdings, adding $936 million in cash to its balance sheet. The CEO explained at the time that the company is open to increasing our bitcoin holdings in the future, noting that the sale was due to concerns about the company’s overall liquidity, most notably due to COVID-19 in China.
Tesla’s filing with the Securities and Exchange Commission states that we may increase or decrease holdings of digital assets at any time based on business needs and our view of market conditions.
