In early 2021, Tesla CEO Elon Musk bought $1.5 billion worth of BTC for the company's treasury. Even though it made a hefty profit on the year, accounting rules forced it to write down the value of its holdings bythat year. That's because its value must be marked down to the lowest value it reaches, even though gains cannot be recorded until the asset is sold.
"For any digital assets held now or in the future, these charges may negatively impact our profitability in the periods in which such impairments occur even if the overall market values of these assets increase," Tesla said.
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Tesla should buy more bitcoin
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How did it lose if it didn’t sell?
Not a loss if you don't sell. Okay, it sold some, but it still has a bunch.