Tesla Holding Bitcoin Worth $2 Billion — Sees Crypto as Both Investment and Liquid Alternative to Cash

Elon Musk’s electric car company, Tesla, has filed an annual report with the U.S. Securities and Exchange Commission (SEC) showing bitcoin holdings with a good worth of just about $2 billion at the top of December. The company sees crypto as both an investment and liquid alternative to cash.

Tesla Has $2 Billion in Bitcoin

Tesla filed an annual report with the U.S. Securities and Exchange Commission (SEC) Friday.

“We continue adapting our investment strategy to satisfy our liquidity and risk objectives, like finance in U.S. government and alternative marketable securities, digital assets and providing product-related funding,” the corporate wrote, adding:

“The fair market value of our bitcoin holdings as of December 31, 2021, was $1.99 billion.”

The report explains that Tesla bought $1.5 billion value of bitcoin in early 2021 and later accepted the cryptocurrency as a kind of payment sure as shooting merchandise in some regions. However, the electrical company suspended acceptive BTC in might last year. In October, Tesla told the SEC that it should restart acceptive cryptocurrencies.

Tesla’s latest plan shows that the company’s “carrying value” of its bitcoin at the top of December was $1.26 billion, that reflects additive impairments of $101 million. Tesla conjointly “had $17.58 billion {of money|of money} and cash equivalents” as of Dec. 31. the corporate noted:

“In the year complete December 31, 2021, we have a tendency to record or so $101 million of impairment losses resulting from changes to the carrying worth of our bitcoin and gains of $128- $128 million on bound sales of bitcoin by us.

The electric company additional told the SEC, “We might increase or decrease our holdings of digital assets at any time supported the requirements of the business and on our read of market and environmental conditions,” elaborating:

“We believe in the long term potential of digital assets, each as an  investment and conjointly as a liquid alternative to cash.”

Tesla’s 2021 annual report doesn’t embody financial gain from the acculturation cryptocurrency dogecoin (DOGE), that the corporate began acceptive for payments for a few merchandise in Jan this year. Elon Musk has mentioned on many occasions that dogecoin is the best crypto for transactions whereas bitcoin is more appropriate as a store of value.

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