According to quarterly earnings report Tesla’s (TSLA) bitcoin holdings at the end of the fourth quarter have not changed from the end of the previous quarter.
During Q4 2021 Tesla did not buy or sell any bitcoin, nor did it record any impairments to the value of its bitcoin holdings because the price of bitcoin was essentially flat from the end of the third quarter to the end of the fourth quarter.
Tesla also did not add to or reduce its bitcoin holdings during Q3, but was required to report a $51 million impairment to as a result of Bitcoin price drop.
The accounting rules for digital assets state that if the price of an asset drops during a quarter, a company must report an impairment. However, if the price increases, it is not reported as a gain on the balance sheet.
Back in February 2021, Tesla announced that it had purchased $1.5 billion worth of bitcoin. Later in Q1, the company trimmed its bitcoin position by 10%, a sale that boosted that quarter’s earnings by $272 million. Tesla didn’t buy or sell any bitcoin in the second quarter.
Overall, Tesla’s adjusted Q4 earnings per share came in at $2.54 versus the $2.36 expected by analysts, according to FactSet. Revenue came in at $17.7 billion against the $17.1 billion expected.
Tesla’s share price initially fell about 4% after the release of the earnings but then recovered. At the time of writing, Tesla (TSLA) trades at $829.1 down 11.55% on the daily chart.
Elon Musk initially announced during ‘The B Word’ conference that Tesla held bitcoin on its balance sheet. Musk had also revealed that the company had no intentions of selling the BTC and would hold onto it.
