Tesla ($TSLA) suffers $101 Million impairment losses on Bitcoin holdings in 2021

NEWS

Tesla revealed that it made an investment amounting to $1.5 billion in bitcoin in the first quarter of 2021.

Elon Musk’s electric vehicle company revealed these figures in a filing with the SEC explaining how its digital asset holdings could affect its profitability.

The market value of its bitcoin holdings as of the end of 2021 was $1.99 billion.

Tesla revealed that it had purchased $1.5 billion worth of bitcoin and began accepting it as a form of payment after that.

In May, Tesla CEO made an abrupt turnaround and went back on this announcement over concerns about the environmental impact of bitcoin mining.

Musk had later promised to start accepting BTC as payment for its electric cars if BTC confirmed that 50% of its mining activities used eco-friendly energy resources.

Tesla had briefly accepted cryptocurrency as payment for sales of certain products. After that, however, the company stopped taking digital currency, mentioning environmental crises around bitcoin mining.