Tesla’s decision to sell most of its bitcoin (BTC) treasury holdings delivered huge profits for the company in the second quarter, even as cryptocurrency prices fell in a bear market.

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In the first six months of 2022, Tesla recorded $170 million in impairment losses “as a result of changes in the book value” of its bitcoin holdings. according to the formal filing of Form 10-Q with the US Securities and Exchange Commission or the SEC. After selling 75% of its BTC holdings for dollars in the second quarter, the company posted a net profit of $64 million.

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In finance, an impairment loss occurs when the fair value of an asset owned by a company falls below the carrying amount of the investment.

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Tesla posted earnings per share of $2.27 in the second quarter on revenue of $16.93 billion. Although profitability declined compared to the first quarter, it rose compared to last year. However, the company’s profitability was negatively affected by rising inflation and growing competition for battery cells.

The electric car maker still has 10,800 BTC in balance. according into bitcoin treasury bills. At a current price of around $22,000, Tesla’s digital assets are valued at around $237 million.

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The 10-K disclosure did not reveal any new details about Tesla’s digital asset strategy. However, the company has stated that it may increase or decrease its holdings over time:

“As with any investment, and in accordance with how we manage our cash and cash equivalent accounts, we may increase or decrease our holdings of digital assets at any time depending on the needs of the business and our view of the market and environmental conditions. environment. ”