As the price of Bitcoin continues to fall, companies that have invested heavily in the queen of cryptocurrencies are recording unprecedented losses. This is the case of Tesla, which lost nearly $600 million according to the latest estimates from the specialized site Bitcoin Treasuries.
Tesla was one of the first major companies to invest heavily in Bitcoin. In February 2021, Tesla invested no less than $1.5 billion in the queen of cryptocurrencies, exploding in the process the price of BTC around 44,000 dollars.
In the process, the manufacturer had confirmed the possibility of buying its Tesla in Bitcoins… Before finally retracting for environmental issues. In February 2022, Tesla was in possession of two billion dollars in cryptocurrencies. A sum reached by reselling certain assets at the right time.
Only and as you may know, the price of Bitcoin has been falling sharply for several months. This Wednesday, June 15, the BTC is about to drop below the 20,000 dollar mark, and according to many specialists the situation is not ready to be settled with a course that could reach $18,000 within the next few weeks.
Bitcoin crash cost Tesla $600 million
However and according to the specialized site Bitcoin Treasuries, all of Tesla’s digital assets are now worth just $905 million. In other words, the company lost nearly $600 million on these investments, in large part because of the Bitcoin tumble.
Nevertheless, these losses should not impact the financial health of the automaker. Indeed, Tesla’s bitcoin stake represents only 10% of its cash and 0.1% of its total market capitalization.
It should be remembered that Elon Musk has invested part of his personal fortune in Bitcoin and cryptocurrencies, and the billionaire recently made it known that he did not intend to part with his assets, believing that it is a long-term investment. Separately, the CEO of SpaceX announced that Tesla would again accept payment in Bitcoinas soon as BTC mining will be less harmful to the environment.
Source: Bitcoin Treasuries