Tesla owner Elon Musk, one of the world’s largest electric car manufacturing companies, is, in a way, the fortune teller of cryptocurrencies. One of his tweets sends the prices of cryptocurrencies from floor to floor and from floor to floor. But Elon Musk’s tweet sometimes overshadows his company Tesla. Above all, China is there to destroy the crypto market.
The price of bitcoin, the world’s most popular cryptocurrency, fell below $30,000 on 23 June for the first time since January 2021. Tesla is expected to lose $ 90 million, or about Rs 670 crore, in the second quarter of 2021 due to the steep fall in bitcoin prices. Let us tell you that Tesla is one of the few companies that has a large holding of Bitcoin.
According to Tesla’s balance sheet, the company holds 42,000 Bitcoins, worth $1.33 billion. The company bought it at a price of $ 31,620. But when the price of bitcoin reached $59,000, the value of Tesla’s bitcoin holding had reached $2.84 billion. Bitcoin prices will have a significant impact on the company’s balance sheet and profit and loss.
But on June 23, when the price of bitcoin fell below $30,000, the company would have to show a loss of $90 million on its balance sheet. Even if bitcoin recovers by June 30, it will still have to show this loss in its balance sheet as impairment costs.
