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Bitcoin weakens Tesla financials

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Tesla reported an impairment related to bitcoin investment in its Q2 financial statement for the period between April to June 2021, revealing the carmaker is still in possession of the crypto.

Tesla had acquired $1.5 billion worth of bitcoin in March, to announce its entry into the cryptocurrency market, a move that caused a surge in bitcoin price until May.

In its financial reports, Tesla placed the most popular cryptocurrency under profitability, but wrote that it suffered bitcoin-related impairment of $23 million during Q2.

This occured during the period bitcoin price crashed due to Elon Musk’s revelation that customers of the carmaker will no longer be able to purchase Tesla brands with the crypto.

One bitcoin was valued at about $54,800 in the second week of May before Musk made the statement. But since the comment, the price of the crypto has crashed by about 47 percent in the last three months – it currently sells for $40,124.53.

Tesla’s financials also confirmed Musk’s statement that the company hasn’t sold its bitcoin holdings since the 10 percent it traded in Q1 2021 for $272 million.

The carmaker now holds $1.311 billion worth of bitcoin as of June 30, 2021, against the $1.331 million value it had in the crypto wallet as of March 31, 2021.

Meanwhile, Ripples Nigeria had previously reported that Tesla is contemplating on receiving bitcoin as payment again, but Musk said bitcoin miners have to convince him.

READ ALSO: Amazon denial of bitcoin payment claim, crashes crypto value

He gave miners condition to reduce fossils fuel usage to mine bitcoin, and increase renewable energy use to 50 percent before accepting bitcoin as payment option

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