Cryptocurrency

Tesla reportedly lost $106M to Bitcoin volatility in Q3

Zegex

Despite the high volatility that has rocked the cryptocurrency market, electric car giant Tesla has said it has managed to limit its bitcoin losses to around $106 million, according to theStreet.

In February 2021, Tesla CEO Elon Musk announced that the company had purchased 43,200 BTC for $1.5 billion.

By the end of June 2022, the company said it had converted about 75% of its Bitcoin holdings into $936 million in cash, leaving about $218 million on its balance sheet.

according to street investment, Year-to-date, Tesla lost just $106 million. Tesla has recorded an impairment loss of approximately $170 million due to its Bitcoin holdings. However, to limit the net loss to her $106 million, she sold about $64 million worth of bitcoin.

From June 30th to September 30th, the Bitcoin price was fairly stable, fluctuating only -0.7%.

Tesla Warns About Crypto Hacking

Tesla said the non-physical form of cryptocurrencies could increase the rate of malicious attacks against the industry.

According to a recent Chainanlysis report, the cryptocurrency market has lost over $3 billion in 125 hacks since the beginning of 2022, and that loss is growing by the day.

Tesla said:

鈥淎s intangible assets without a centralized issuer or governing body, digital assets have been and may be subject to security breaches, cyberattacks, or other malicious activity. .”

Tesla has warned that it could lead to further losses of digital assets if proper measures are not implemented.

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