Tesla’s Bitcoin is Now Worth $184 Million.

The news will undoubtedly excite cryptocurrency and bitcoin enthusiasts.

Throughout the fourth quarter, Tesla and Elon Musk continued to hold Bitcoin they had on their balance sheets at the end of September. Tesla’s Bitcoin is now worth $184 million.

The group gave a much-needed vote of confidence to the young industry powered by blockchain technology, which aims to disrupt the traditional financial system at the start of 2021.

In February of that year, Musk announced that Tesla (TSLA) — Get Free Report — had invested $1.5 billion in bitcoin. It paid around $30,000 for over 43,200 bitcoins.

During the crypto craze, bitcoin’s price soared to a record $69,044.77 on November 10, 2021. However, the crypto market’s collapse has alarmed most participants, including its evangelists. After reaching an all-time high of $3 trillion, cryptocurrency has lost nearly $2 trillion.

According to data firm CoinGecko, Bitcoin has lost two-thirds of its value, or nearly 67%, and is now worth around $23,000.

Tesla had limited the damage by selling a large portion of its bitcoin stake before prices fell below the purchase price. Last July, Tesla announced that it had sold 75% of the 42,000 bitcoins it had on hand on April 1.

Tesla’s Bitcoin is now worth $184 million.

“We have converted approximately 75% of our bitcoin purchases into fiat currency,” the Model Y and Model 3 manufacturer stated at the time.

It “recorded $170 million in impairment losses due to changes in our bitcoin’s carrying value.” The company’s bitcoin bet resulted in a net loss of $106 million.

The bitcoins remaining on its balance sheet were worth $218 million.

The value of these bitcoins had not changed by the end of September because the price of the most popular cryptocurrency had not moved significantly in Q3 2022.

Bitcoin prices were nearly stable (-0.7%) between June 30 and September 30.

However, this was not the case in Q4. Bitcoin prices fell 15% from the third quarter to the end of the year.

Fans of digital currencies will be relieved to learn that Tesla and Musk did not sell their bitcoins during this difficult period. However, the value of their bitcoins has plummeted, according to financial documents released by the company on Jan. 25 as part of its fourth-quarter results.

Tesla claims that the value of its bitcoins fell from $218 million on September 30 to $184 million on December 31, a $34 million, or 16%, asset depreciation.

No surprise here: Tesla warned in a regulatory filing in November that the prices and total value of these digital assets would fluctuate.

“Digital asset prices have been and may continue to be highly volatile, including as a result of various associated risks and uncertainties,” the company stated in the regulatory filing.

“For example, the prevalence of such assets is a recent trend, and their long-term adoption by investors, consumers, and businesses is unknown.”

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