Bitcoin Impairment: Tesla Reports BTC Conversion in Latest SEC Filing
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Free Crypto Signals Channel
Free Telegram Channel
The giant electric vehicle manufacturer noted in its Q2 report that it converted 75% of its Bitcoin holdings into fiat currency, a move it originally promised it wouldn’t make. Tesla’s BTC conversion added $936 million in cash to its balance sheet, with the company explaining:
“We recorded $170 million of impairment losses resulting from changes to the carrying value of our bitcoin and gains of $64 million on certain conversions of bitcoin into fiat currency by us.”
Tesla initially added $1.5 billion worth of Bitcoin to its balance sheet in early 2021, sparking excitement across the market at the time. A few months later, the company sold $272 million BTC worth, claiming it was simply a liquidity test. At the time, Tesla revealed in its SEC filing that it made $128 million from the sale in Q1 2021.
However, its subsequent reports showed that the company recorded some drawdown in its BTC position. In its Q2 2021 and H1 2021 filings, the company reported $23 million and $50 million impairment losses, respectively.
Tesla’s filing with the SEC clarified that the company purchased $1.5 billion worth of Bitcoin in Q1 2021. Before now, the exact figure had remained largely unknown, with a flurry of speculations.
Key Bitcoin Levels to Watch — July 26
Bitcoin resumed its bearish momentum on Tuesday, with the cryptocurrency falling beneath the $21K level for the first time in eight days. The bearish sentiment comes as the US dollar gained significant demand following favorable economic events. Speaking of, the US Fed is expected to deliver another 0.75% rate hike tomorrow, which could drive the benchmark cryptocurrency below the $20K peg.
BTC has enough room for additional declines in the coming days, warranting some caution on bullish bets. However, the bearish tension should ease if the cryptocurrency recaptures the $22K top.
Meanwhile, my resistance levels are at $21,000, $22,000, and $23,000, and my key support levels are at $20,000, $19,000, and $18,000.
Total Market Capitalization: $952 billion
Bitcoin Market Capitalization: $399 billion
Bitcoin Dominance: 41.9%
Market Rank: #1
You can purchase Lucky Block here. Buy LBlock
