Elon Musk's electric car company Tesla disclosed in its Q2 2021 earnings report released Monday that it holds $1.311 billion in digital assets, all in Bitcoin. The company did not buy or sell any Bitcoin during the second quarter, but recorded a Bitcoin-related impairment of $23 million.
No Bitcoin Activity in Q2
Tesla's unaudited balance sheet as of June 30 shows a net digital asset value of $1.311 billion. The only Bitcoin sale occurred in Q1, when Tesla sold $272 million worth (about 10% of its holdings). CEO Elon Musk previously explained on Twitter that the sale was to prove Bitcoin's liquidity without moving the market. In April, Tesla had reported its Bitcoin stash was worth $2.5 billion in an SEC filing.
The quarterly impairment reflects Tesla's accounting method for digital assets, which it treats as indefinite-lived intangible assets under ASC 350. The company performs an impairment test each quarter: if the carrying value exceeds the fair value based on the lowest price on active exchanges during the period, an impairment loss is recognized. This means even if Bitcoin prices recover, Tesla cannot write up the value on its books until a sale occurs.
Musk Reaffirms Diamond Hands
The financial data confirms Musk's repeated statements that neither he nor Tesla has sold any Bitcoin. At the recent "B Word" Bitcoin event, Musk revealed he personally owns Bitcoin, Ether, and Dogecoin, while SpaceX also holds Bitcoin. "I might pump but I don't dump … I would like to see Bitcoin succeed," he said, adding that "Tesla will most likely resume accepting Bitcoin."
Tesla started accepting Bitcoin payments in March but paused in May due to environmental concerns. Musk said the company would resume when miners confirm they are using 50% clean energy. The Q2 report did not indicate any change in that stance.
Overall, Tesla's Q2 report underscores its long-term Bitcoin holding strategy despite price volatility. The $23 million impairment is a non-cash accounting charge and does not reflect a change in the company's confidence in cryptocurrency.