The 10-Q report that Tesla (TSLA) sent to the Securities and Exchange Commission on Monday, the company made $64 million from the sale of 75% of its bitcoin (BTC) holdings, which brought in a total of $936 million during the second quarter.
But the company also said that the value of its remaining bitcoins was $170 million less than what they were worth.
On Wednesday, during the call and press release about Tesla’s quarterly results, some claims were made that the filing added to and made clear.
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During the earnings call, Zach Kirkhorn, Tesla’s Chief Financial Officer, said that the company “converted a majority of our bitcoin holdings to fiat for a realized gain, offset by impairment charges on the rest of our holdings, netting a $106 million cost to the [Profit and Loss Statement] included within restructuring and other.”
From January 1 to June 30, Tesla had an impairment charge of $170 million and a gain of $64 million, according to the 10-Q it released on Monday.
It did not add to or take away from any of its holdings during the first quarter. Neither did it report any charges of impairment during that time.
So, those must have all happened in the second quarter.
In the first quarter of 2021, Tesla bought its first $1.5 billion worth of bitcoin. The company did not say how much it usually pays for bitcoin.
In the second half of the first quarter, the company sold some of the bitcoins it had bought. This made it 10 percent less exposed to the cryptocurrency and added $272 million to its profits for that quarter.
Before the last quarter, it hadn’t added to or taken away from its interests. CEO Elon Musk said that this was done to raise money because COVID-19 lockdowns in China, which is one of its main markets, were making it hard to make money.
Before that, it hadn’t added or taken away anything.
The company didn’t say how much bitcoin it sold in the second quarter, but early estimates show that the average price was somewhere around $29,000 per bitcoin.
This kept Tesla from having to pay a much bigger loss charge. The price of Bitcoin stayed around $18,700 as the second quarter came to a close.
How to put your Tesla into Sentry Mode
When a driver wants to use Sentry Mode, they must first turn it on by going to the Controls menu, choosing Safety and Security, and then Sentry Mode.
To be more specific, you need to go to your car’s settings menu and then to the security settings from there. After that, you’ll need to use the toggle switch to turn on Sentry Mode.
You can also turn on Sentry Mode with voice commands or the control pane in the Tesla app.
Requirements
Sentry Mode won’t work unless Dog Mode is turned off and a dashcam with a USB drive built in is installed.
Every time you do something, you have to turn on Sentry Mode by hand. Other than that, Sentry Mode will be turned off by default. The function will start to work once the car is parked.
What a difference a year can make. New investor filings show that during the second quarter of 2022, Tesla sold Bitcoin for a total of $936 million.
This meant that it had lost 75% of the Bitcoin it had. Since the company had put a lot of money into Bitcoin in 2021, this is what happened.
Elon Musk, who ran Tesla in 2021, was very happy about how much better Bitcoin was than traditional fiat money. Because of this, the company jumped on Bitcoin and spent $1.5 billion worth of Bitcoin.
Customers of Tesla could pay for cars with bitcoin for part of the year. But “Bitcoin impairment” has made it harder for Tesla to make money in the last few months.
In its financial report for the second quarter, the company said this.