One of the biggest institutional Bitcoin investors, Tesla, kept their BTC holdings unchanged with $184 million for the second time in a row, according to data from its most recent balance sheet.
However, the figures are down from $218 million in the previous two quarters of 2022.
The reduced value of its crypto holdings has been attributed to BTC’s price volatility which led to an impairment charge of $34 million.
The automobile behemoth first bought BTC in early 2021 for $1.5 billion and then sold nearly 75% of its Bitcoin holdings in the second quarter of last year.
Tesla sold its BTC at the time to maximize its cash position, according to CEO Elon Musk, because it was unclear “when the Covid lockdowns in China would alleviate.”
“We are certainly open to increasing our BTC holdings in [the] future, so this should not be taken as some verdict on crypto,” he stressed.
According to regulatory documents, Tesla suffered an impairment loss on its Bitcoin assets of $204 million in 2022. A profit from trading countered the loss by $64 million, leaving the automaker with a net loss of $140 million.
Musk’s rendevous with BTC began in March 2021, when the business magnate announced that Tesla would begin taking Bitcoin as payment for its vehicles in March 2021, and the price of the cryptocurrency shot up.
But weeks later, Musk and Tesla backtracked on that decision, citing the environmental impact of mining The price of the asset then subsequently tanked.
On the other hand, the largest corporate holder of Bitcoin- American software company MicroStrategy, revealed that its BTC reserves are in profit.
Largest Bitcoin Holder Announces Profit on BTC Reserves
MicroStrategy stated in its SEC filing dated April 5 that between March 24 and April 4, the firm and its subsidiaries bought about 1,045 BTC for roughly $29.3 million.
Recently, the business analytics firm integrated the Bitcoin Lightning Network [LN] into its CEO’s email address. The LN is BTC’s layer 2 scaling solution designed to make payments cheaper and faster.
Announcing the same, Michael Saylor, the co-founder of the firm said infusing the technology into his official email ID will allow anyone to send BTC. So far, the 58-year-old billionaire received 20 Satoshi [Stats].