Tesla cashes out $936 million in Bitcoin, after a year of crypto turbulence

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July 21st, 2022

FILE - An advertisement for Bitcoin cryptocurrency is displayed on a street in Hong Kong, Thursday, Feb. 17, 2022. Britain has unveiled plans to regulate some stablecoins as part of a broader plan to become a global hub for digital payments, as authorities in the U.S. and Europe race to draw up rules for cryptocurrencies. The British Treasury said Monday, April 4, 2022, that it would also work with the Royal Mint to create a digital collectible known as an NFT and introduce a set of measures aimed at attracting cryptocurrency companies. (AP Photo/Kin Cheung, File)

What a difference a year makes. After making big plays in Bitcoin in 2021, Tesla jettisoned $936 million worth of the cryptocurrency in the second quarter of 2022, trimming its Bitcoin holdings by 75%, the company said in new investor filings.

Tesla aggressively embraced Bitcoin in 2021, investing $1.5 billion in the currency as CEO Elon Musk touted Bitcoin’s advantages over standard fiat currency. For part of the year, Tesla customers could buy cars using Bitcoin.

But in recent months, Tesla’s profitability was affected by “Bitcoin impairment,” it said in its financial summary of the second quarter.

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