Tesla revealed in its Q2 2022 Shareholder’s Deck that it converted “approximately 75%” of its Bitcoin holdings into fiat currency, which is government-issued but not backed by any commodity.
“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency,” Tesla said in the Deck, which was released moments after market close.
Tesla purchased $1.5 billion worth of Bitcoin in February 2021 and soon after activated purchases with the cryptocurrency. Eventually, Tesla halted Bitcoin transactions based on concerns over sustainability but continued to detail its holdings in Earnings Reports, Shareholder Decks, and SEC filings.
Tesla reported a half-billion dollar increase in value at the end of 2021, but crypto was also affected by tough market conditions in 2022. Bitcoin was as high as $47,733 at the beginning of the year but plummeted below $20k by mid-June.
The Bitcoin conversions added $936 million of cash to Tesla’s balance sheet, the company said.
Tesla’s Q2 Earnings knocked expectations out of the park, beating Consensus estimates handily. Tesla posted revenue of $16.934 billion, beating estimates narrowly. However, EPS estimates set Tesla at $1.83. Tesla reported significantly higher EPS at $2.27.
Disclosure: Joey Klender is a TSLA Shareholder.
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