Electric vehicle juggernaut Tesla Inc. TSLA revealed none of its Bitcoin BTC/USD holdings were sold in the third quarter, extending its HODLing period for the fifth successive quarter.
What happened: Tesla’s balance sheet denoted $184 million in digital assets, as per the company’s earnings report released Wednesday after the market close.
While the corporation does not publish a breakdown of its digital holdings, on-chain tracking firms have indicated that it is primarily comprised of Bitcoin, the world’s largest cryptocurrency.
As of this writing, the firm had 11,509 Bitcoins, worth roughly $773 million, at current market prices.
Why It Matters: The significant difference in value as reported by Tesla and other tracking firms is likely due to the impairment cost being factored in.
Accounting requirements require most cryptocurrencies to be reported as long-lived intangible assets. This means that they are originally reported on a balance sheet at the acquisition price and subsequently “tested for impairment” or a decrease in value regularly.
Tesla’s Bitcoin journey began in January 2021, when it first acquired $1.5 billion worth of the leading cryptocurrency.
The Elon Musk-led firm previously accepted Bitcoin as a payment option for vehicles before ending the practice due to concerns about the energy consumption used in Bitcoin mining.
Price Action: At the time of writing, Bitcoin was exchanging hands at $67,235, up 0.50% in the last 24 hours, according to data from Benzinga Pro. Shares of Tesla were up 12% in after-hours trading after closing 1.98% down during Wednesday’s regular session.
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