In its annual 10-K filing with the Securities and Exchange Commission, Tesla has confirmed that it booked a huge loss of $204 million for the fiscal year 2020, but also made $64 million from trading Bitcoin.
Let’s start with the bad: despite all the other successes in this report – record earnings, revenue that was up 37%, and margins that were down – the value of Tesla’s BTC holdings had to be written down to the lowest value it reached throughout the year, thus resulting in a hefty loss.
But, you see, earlier this year, Tesla CEO Elon Musk invested a whopping $1.5 billion worth of BTC in the company’s treasury. Despite the loss, Tesla still made a solid $64 million trading the cryptocurrency.
Tesla removed language stating it held a belief in the 'long-term potential' of digital assets in its most recent 10-K filing. It also detailed a loss of $200M last year on its Bitcoin investment.https://t.co/dxzOWeGGth by @KlenderJoey
— TESLARATI (@Teslarati) January 31, 2023
Last July, the tech giant sold off three-quarters of its BTC holdings, amounting to a $936 million loss, citing the need to shore up cash reserves in the face of uncertain times due to the COVID-19 pandemic and its impact on their Chinese factory. However, Elon Musk made it clear that the decision wasn’t a “verdict” on Bitcoin itself.
In March, Tesla drew attention when it declared it would be taking Bitcoin payments for its vehicles – a first for a major automobile company. But just two months later, the company backpedaled on its statement, citing the environmental toll of Bitcoin mining. No sooner than this announcement, Wall Street investors had begun speculating that ESG (Environmental, Social, and Governance) investors had given Elon Musk strict “pushback” leading to the sudden 180!
No one knows for certain what comes next for Tesla and Bitcoin, but here’s to hoping that this isn’t the last we’re hearing from the tech giant making noise in the crypto space. Until then, stay informed, and stay Bitcoin-ing!