Tesla still has $222 million in digital assets on its balance sheet after dumping most of its bitcoin

view original post

Tesla CEO Elon MuskSteve Nesius/Reuters

  • Tesla disclosed $222 million in digital assets in a regulatory filing on Monday after selling most of its bitcoin.

  • The company revealed last week that it converted 75% of its bitcoin holdings to cash.

  • Tesla also disclosed a $170 million impairment charge on its crypto investments for the six-month period that ended June 30.

Tesla still has $222 million on its balance sheet days after disclosing the sale of 75% of its bitcoin holdings, according to a new filing with the Securities and Exchange Commission.

The electric vehicle maker also disclosed a $170 million impairment charge on its crypto investments for the six-month period that ended on June 30 as well as a $64 million gain from its conversion of bitcoin to cash.

But Tesla is facing criticism over the fire sale of its crypto holdings and a lack of transparency over details of the bitcoin liquidation. Onlookers held out hope that its SEC filing Monday would offer more detail on the sale, although the company isn’t obligated to do so.

CEO Elon Musk disclosed to investors on the company’s earnings call last week that the reason behind the sale of bitcoin was due to uncertainty over “when the COVID lockdowns in China would alleviate.”

The Monday filing added that Tesla bought or recieved $1.50 billion worth of digital assets in six-month periods ending June 30 of this year and 2021.

Tesla also said it received a second SEC subpoena over Musk’s 2018 tweet debating taking the company private. The company said it received the subpoena on June 13.

Read the original article on Business Insider