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Elon Musk\u2019s electric car company, Tesla, is holding bitcoin worth $1.311 billion. The company did not buy or sell any bitcoin during the second quarter but recorded bitcoin-related impairment of $23 million. Tesla\u2019s action reaffirms Musk\u2019s prior statement that neither he nor Tesla had sold their coins.<\/strong><\/p>\n Elon Musk\u2019s Tesla released its second-quarter earnings report Monday. The company\u2019s Q2 2021 unaudited balance sheet shows a net digital asset value of $1.311 billion as of June 30.<\/p>\n Tesla did not buy or sell any bitcoin in the second quarter. The company\u2019s Q2 unaudited statement of cash flows still shows that the only cryptocurrency purchase made was the $1.5 billion<\/a> BTC<\/a> purchase in Q1.<\/p>\n The cash flow statement also shows that the only time Tesla sold its bitcoin was in Q1 for $272 million. Tesla CEO Elon Musk previously explained<\/a> that the sale was to prove the liquidity of bitcoin, tweeting on June 13: \u201cTesla only sold ~10% of holdings to confirm BTC<\/a> could be liquidated easily without moving market.\u201d<\/p>\n In April, Tesla revealed in a filing with the U.S. Securities and Exchange Commission (SEC) that its bitcoin stash was worth $2.5 billion<\/a>.<\/p>\n Tesla\u2019s Q2 earnings report specifically mentions bitcoin once, under the \u201cprofitability\u201d section which highlights items offsetting the company\u2019s operating income, including \u201cbitcoin-related impairment of $23M.\u201d<\/p>\n According to Tesla\u2019s 10-K form filed with the SEC, the company treats digital assets \u201cas indefinite-lived intangible assets in accordance with ASC 350, Intangibles\u2013Goodwill and Other,\u201d elaborating:<\/p>\n The 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.<\/p>\n<\/blockquote>\n \u201cWe will perform an analysis each quarter to identify impairment. 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,\u201d the company detailed.<\/p>\n <\/ins> <\/ins> <\/p>\n Tesla\u2019s financial statements confirm Elon Musk\u2019s previous statements that Tesla had diamond hands and would not sell its bitcoins. Musk said on several occasions that neither he<\/a> nor Tesla had sold<\/a> any BTC<\/a>.<\/p>\n Tesla started accepting<\/a> BTC<\/a> for payments in March but stopped in May. Musk cited environmental<\/a> issues as the reason and said that Tesla would resume<\/a> accepting bitcoin when miners confirm they are using 50% clean energy.<\/p>\nTesla\u2019s Q2 Bitcoin Holdings<\/h2>\n
![\"Tesla](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2021\/07\/tesla-q2-balance-sheet.jpg\" "\\"Tesla")
Tesla Neither Purchased Nor Sold Bitcoin in Q2<\/h2>\n
![\"Tesla](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2021\/07\/purchase-sale.jpg\" "\\"Tesla")
$23 Million Bitcoin-Related Impairment<\/h2>\n
![\"Tesla](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2021\/07\/tesla-q2-profitability.jpg\" "\\"Tesla")
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