How Bitcoin impacted Tesla, MicroStrategy, and Square’s Q2 earnings
Elon Musk’s electric carmaker Tesla posted record earnings last quarter and unlike in Q1 made no changes to its billion-dollar Bitcoin portfolio.
Tesla’s unaudited cashflow statement shows the company generated $11.4 billion revenue last quarter, up 98% year-on-year with $1.1 billion profit.
The Palo Alto giant also stepped up production. Tesla made over 206,000 cars in Q2, doubling its output compared to last year, WSJ reported.
Public stocks that hold Bitcoin (like Tesla) must report impairment losses when their crypto is worth less than when they bought it.
Tesla recorded $23 million in Bitcoin-related impairment losses in Q2 — meaning the company was just in the red on their investment at the end of the quarter.
For now, buying Bitcoin is only way Tesla can acquire more. The company briefly accepted BTC in March only to rescind the offer two months later citing “rapidly increasing use of fossil fuels for Bitcoin mining.”
Tesla would take Bitcoin once more when miners confirm they consume 50% clean energy to generate new cryptocurrency, Musk claimed.
