According to Tesla’s most recent balance sheet, the business has $184 million worth of bitcoin. Despite the crypto winter and the spread of the cryptocurrency ecosystem, Tesla did not sell any digital assets during the fourth quarter of 2022.
Digital Assets of Tesla are Worth $184 Million
On Wednesday, Tesla Inc. (Nasdaq: TSLA) revealed its Q4 2022 financial results. Net digital assets for the company are $184 million, down from $218 million in the prior quarter, according to its balance sheet. There were no purchases or sales of digital assets during the fourth quarter, based on the company’s other financial statements.
Tesla’s Q4 2022 balance sheet. Source: Tesla Inc.
The majority of the digital assets owned by the electric car company are bitcoin. Its cryptocurrency holdings have lost value as a result of changes in the price of bitcoin, which resulted in a $34 million impairment charge. At the time of writing, the price of one bitcoin is $23,087; in 2022, it dropped from roughly $47,8K to about $16.6K.
Tesla has not publicly said how many bitcoins it currently holds, although an industry estimate indicates that it may be holding 9,720 BTC. Along with bitcoin, Tesla also has a small quantity of the meme cryptocurrency dogecoin (DOGE), which it got by selling some items. In January of last year, the business started to accept dogecoin for select purchases.
Early in 2021, Tesla spent $1.5 billion on BTC purchases; since then, no additional purchases have been made. However, in the second quarter of last year, the business sold off nearly 75% of its BTC holdings. When the Covid lockdowns in China were uncertain, Tesla’s CEO Elon Musk stated that the company sold its Bitcoin to maximise its cash position. He added that this should not be interpreted as a judgement on bitcoin because “we are certainly open to raising our bitcoin holdings in the future.” Additionally, he mentioned that the business didn’t sell any DOGE.
Dogecoin, ether, and bitcoin are all held privately by Elon Musk. In March of last year, he tweeted that he still owned all three cryptocurrencies and would not sell any of them. The billionaire said, “I still own & won’t sell my bitcoin, ethereum, or doge.
Musk reaffirmed: “There’s going to be bumps along the way and we’ll probably have a fairly severe recession this year, definitely,” during Tesla’s earnings call with analysts on Wednesday afternoon. Though I hope not, probably The Tesla CEO emphasised: Despite the fact that “one can’t foresee the short-term stock value,”
But long term, I’m convinced that, Tesla will be the most valuable company on Earth.