Tesla continues to retain its hold over its digital assets even as prices sink in a brutal bearish market that has wiped off billions across the world. The electric-car major recorded a major reduction in nominal value on the Bitcoins it continues to hold after a stormy final quarter.
The Tesla maker shows no sign of relenting to the slide in prices and surrendering. The price of the digital assets it held declined to $184 M in the 4th quarter, a slide from its value of $218 M at the end of the 3rd quarter. By December, the Bitcoin price was down to a mere $16,500 at the end of December from a price of $19,500 in September.
Tesla Dumped Large Part Of Its Holding In 2022
Elon Musk’s Tesla bet big on Tesla early in 2021. It joined MSTR as among the early birds to hold Bitcoin as corporate treasurer. Tesla dumped a large part of its holding in 2022, in the 2nd quarter.
The EV-maker then dumped a majority of its position by the 2nd quarter of last year. it then got rid of over 30,000 of the holdings, around three-quarters of its original value. The company thus managed to avoid a major loss in the whole deal.
But Tesla carries on holding onto Bitcoin and going by standard accounting practices, will keep decreasing its holding value in its books, till the asset value sinks below its purchase price.
The automobile group continues to hold onto Bitcoin and under account standards. The company brought Bitcoins at $30,000 each and held on to ride the peak bull market where it reached an all-time peak in November 2021 when it reached. The crash came soon after in the first quarter of 2022. High inflation rates have since pushed the Feds to go for aggressive measures including raising interest rates.
