Tesla reportedly did not make Bitcoin (BTC) purchases as the crypto market fell since January 1st.
For the record, Bitcoin’s ownership by Tesla for the fourth quarter (Q4) of 2021 was unchanged, remaining at $ 1.26 billion since the third quarter (Q3) of the same year.
The horizontal movement of BTC prices from the end of Q3 to the end of Q4 prompted zero Bitcoin buying and selling activity by the electric vehicle manufacturer.
In February, Tesla bought a large amount of Bitcoin worth $ 1.5 billion.
However around the first quarter (Q1) of 2021, Tesla by making Bitcoin sales by 10%, thus driving the company's profit increase of $ 272 million.
In the second quarter (Q2) no trading of BTC assets was recorded, as was the case for Q3.
But in Q3, Tesla was sued to pay $ 51 million worth of impairment charges.
Impairment charges exist in the accounting supervision of digital assets.
If the asset price declines in any quarter (period), the company is obliged to report the impairment. If the price increases, the asset will not be reported as a profit in the balance sheet.
Looking at the flow of assets owned by Tesla, it’s no wonder why the company remains in possession of $ 1.26 billion worth of Bitcoin.
However, Tesla’s state of ‘silence’ during the collapse of the crypto market price was far different from MicroStrategy, and El Salvador which added another 410 BTC, making the country own over 1,000 BTC so far.
Is Tesla upset or is it focusing on the Dogecoin (DOGE) payments project? Nobody knows.
