Due to the volatility of the bitcoin exchange rate, Tesla recorded losses of $ 101 million. The automaker still considers cryptocurrencies a promising asset for investment.
Tesla's losses from the fall in the value of its bitcoins by the end of 2021 amounted to $101 million, the automaker said in an annual report filed with the U.S. Securities and Exchange Commission (SEC).
"For the year ended December 31, 2021, we recorded an impairment loss of about $101 million as a result of changes in the book value of our investments in bitcoin," the document says. In addition, Tesla reported a profit of $128 million from the sale of part of its digital assets in March 2021.
The electric car manufacturer invested $1.5 billion in bitcoin in February 2021. Tesla said that as of December 31, the market value of its assets in this digital currency was $1.99 billion.
The company stressed that it understands the risks associated with the volatility of cryptocurrencies and the lack of regulation, as well as their exposure to cyber attacks.
The electric car manufacturer said in a report: "We believe in the long-term potential of digital assets both as an investment and as a liquid alternative to cash." The automaker also warned that digital assets may be subject to fluctuations in market prices, which means that quotations may be unfavorable at those moments when it decides to sell them.
In January 2021, the company updated its investment policy for the sake of "greater flexibility in further diversification and increasing cash returns": Tesla has started investing some of its cash in digital assets, gold bars, exchange-traded funds and other assets. The company also accepted bitcoin as payment when buying electric vehicles, but suspended this practice in May 2021. Elon Musk then said that he was suspending the sale of cars for bitcoins due to the unecologicity of mining.
Bitcoin began 2021 with a price of $29,329.7 and by February 21, it rose to $57,420.2 per coin, after which it rolled back down, and then began to rise in price again. Bitcoin peaked in November at $67,520. As of 17:25 Moscow time on February 7, bitcoin was trading at $42,922.18 per coin.
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