Bitcoin Stalls as Tesla Reports Q2 Earning Report
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Tesla released its earnings reports for Q3 on Wednesday, which showed that its Bitcoin (BTC) holding has flourished, among other things. The behemoth electric vehicle manufacturer revealed that it realized $13.75 billion in revenue in the third quarter of 2021, a 57% increase from the same period last year. The official report noted that:
“The third quarter of 2021 was a record quarter in many respects. We achieved our best-ever net income, operating profit, and gross profit.”
The balance sheet shows that Tesla’s net Bitcoin holding as of September 30 was at $1.26 billion, down by -16% from the previous quarter. That said, the company reported a Bitcoin-related impairment of -51 million in Q3.
Meanwhile, the company’s cash flow statement revealed that only BTC purchase and sale occurred in Q1 when Tesla purchased $1.5 billion worth of BTC but sold $272 million worth of BTC to test liquidity.
According to the company’s 10-K form filed with the SEC, Tesla’s “digital assets are initially recorded at cost and are subsequently remeasured on the consolidated balance sheet at cost, net of any impairment losses incurred since acquisition.”
The electric vehicle manufacturer explained that it runs an analysis every quarter to find impairment, noting that: “If the carrying value of the digital asset exceeds the fair value based on the lowest price quoted in the active exchanges during the period, we will recognize an impairment loss equal to the difference in the consolidated statement of operations.”
Key Bitcoin Levels to Watch — October 24
After recording a new all-time high on Wednesday, BTC has fallen into correction mode towards the $60K psychological support to ease out of overheated conditions. The benchmark cryptocurrency has remained in a sideways momentum between $62K and 61K for the past few days but temporarily dipped below the $60K support yesterday.
That said, we expect a return to the $60K – $59K support in the coming days before posting a rebound to the $63K to $64K area.
Meanwhile, our resistance levels are at $66,000, $67,000, and $68,000, and our key support levels are at $64,000, $63,000, and $62,000.
Total Market Capitalization: $2.51 trillion
Bitcoin Market Capitalization: $1.13 trillion
Bitcoin Dominance: 45.3%
Market Rank: #1
