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According to Tesla\u2019s latest Q3 earnings report filed with the United States Securities and Exchange Commission, the electric vehicle (EV) manufacturer disclosed that it has invested a total of $1.5 billion into Bitcoin (BTC<\/a>) since early 2021. Of this amount, the firm is currently sitting at $170 million of unrealized loss from the change in the fair value of its investment. This is offset by a gain of $64 million from realized profits on Bitcoin at various points in the last two years, leading to a net loss of $106 million by the end of Q3.\u00a0<\/p>\n Tesla\u2019s losses did not materially affect its core operations, the filing said<\/a>. Year-over-year, the EV manufacturer\u2019s profits grew 169% from $3.3 billion in the first nine months of 2021. However, Tesla says that it\u2019s only holding roughly $218 million worth of Bitcoin<\/a> on its balance sheet.\u00a0<\/p>\n Under accounting rules, digital assets are considered indefinite-lived intangible assets. As a result, any decrease in their fair values will require Tesla to recognize impairment charges, whereas the firm does not make upward revisions for any price increases until a sale. In such beneficial tax treatment, losses can be deducted against profits to reduce tax liabilities, while capital gains are not taxed until the time of sale.<\/p>\n Related:\u00a0Binance, Sequoia still backing Elon Musk\u2019s bid for Twitter<\/a><\/em><\/strong><\/p>\n Tesla\u2019s CEO, Elon Musk, is well-known in the crypto space for his support of digital assets, an affinity for memecoins, such as Dogecoin (DOGE<\/a>) and his $44-billion ambition to take over social media giant Twitter. Throughout the ongoing acquisition, the billionaire tech celebrity has\u00a0pledged<\/a>\u00a0to \u201celiminate the spam and scam bots from the platform,\u201d stating, \u201cThey make the product much worse. If I had a Dogecoin for every crypto scam I saw, we\u2019d have 100 billion Dogecoin.\u201d<\/p>\n<\/div>\n