Popular billionaire and Dogecoin enthusiast Elon Musk’s Tesla is facing almost $600M loss in its Bitcoin investment amid the current terrifying crypto winter.
Tesla actually purchased $1.5 billion worth Bitcoin in January 2021 and cashed out about 10% of that investment in the first quarter.
Bitcoin was worth more than $30,000 at the time. Tesla’s carrying value on the roughly 42,000 coins held was around $1.26 billion at the end of the first quarter of 2022, after a few profits and losses.
Currently according to Bitcoin Treasuries, the value of Tesla’s bitcoin holdings on the company’s balance sheet is only $908.906 million.
Tesla’s only silver lining is that its Bitcoin holdings account for only 10% of its cash position and 0.1% of its total market capitalization but still this loss costs a lot of money.
Elon Musk has also invested in Bitcoin and has previously used the “diamond hands” meme to indicate that he intends to hodl the bitcoin investment.
In the last few weeks, the value of both major and minor cryptocurrencies has plunged, with the overall market losing billions of dollars.
At the time of writing, Bitcoin is trading at $21,126.69, down from a high of $69,044.77 reached in November. Bitcoin has lost nearly 70% of its value in just eight months.
Well all the big corporations who were fighting to be the top holder of bitcoin are definitely going through a massive crisis. Michael Saylor’s MicroStrategy suffered a roughly $1 billion loss on its Bitcoin holdings as the coin dropped below $22,000.