Agencies-Gaza post
Tesla clears $440 mln Bitcoin stock
“Tesla isn’t the only one feeling the pain from the Bitcoin crash. Several companies that have converted part of their treasury into Bitcoin are taking big hits to their bottom line,” reported StockApps financial analyst Edith Reads.
The index includes MicroStrategy, whose BTC investment lost over a billion dollars. The business had 129,218 bitcoins on its balance sheet, bought at a value of $3.97 billion. However, that value has melted down to $2.895 billion.”
Other groups feeling the pain from their Bitcoin assets include Block, Square, and Marathon Digital Holdings.
Why is bitcoin crashing?
The crack in Bitcoin’s value is being blamed on several aspects, including rising interest rates, inflation fears, and a series of problems at cryptocurrency companies.
Tesla’s $440 million impairment is just a reduction in the bucket reached to the billions other institutions and investors have lost in the Bitcoin crash. But it is a reminder that even Elon Musk isn’t immune to the volatility of the cryptocurrency markets.
This year, Tesla registered their Bitcoin holdings worth $1.26 billion in the first quarter, while its value in the market was about $1.96 billion.
Tesla’s gamble on Bitcoin has come under increasing scrutiny in recent months as the cost of the cryptocurrency has tumbled. Many other companies that have accepted bets on Bitcoin have also been under pressure to justify their investments.
The dropping costs of Bitcoin and other cryptocurrencies have put stress on companies that have instilled in them. As a result, many investors are now asking whether these assets were wise in the first place, according to the StockApps.com survey.
