![](\"https:\/\/techcrunch.com\/wp-content\/uploads\/2021\/02\/tesla-bitcoin-alt.jpg?w=711\")
\n\t\t<\/div><\/div>\nTesla recorded a $204 million impairment loss in 2022 on its bitcoin holdings, according to regulatory filings<\/a>. The loss was offset by $64 million in profits from bitcoin trading, leaving the automaker with a net loss of $140 million.<\/p>\n Tesla had invested $1.5 billion in bitcoin<\/a> during the first quarter of 2021, stating that it believed in the longevity of the cryptocurrency. At the time, the company said bitcoin was a great place to store cash and still access it immediately, all the while providing a better return on investment than more traditional central banks. In fact, after its initial purchase, Tesla promptly trimmed its position by 10%, making the automaker a quick $101 million.<\/p>\n In March 2021, CEO Elon Musk said Tesla would start accepting bitcoin<\/a> as payments for Tesla vehicles, causing the price of the crypto to boom. A few weeks later, Musk and Tesla backpedaled on that decision<\/a>, expressing concern for the amount of energy needed to mine bitcoin. The price of bitcoin then subsequently sank.<\/p>\n Last year, as the value of bitcoin began to plunge, Tesla sold 75% of its bitcoin holdings and used the proceeds to buy traditional currency. The automaker today owns about $184 million worth of bitcoin, and may be holding out for a rebound.<\/p>\n The crypto market has experienced a dramatic drawdown over the past year<\/a>. Today, bitcoin is trading at $23,045.50, which is about 66% below the all-time high of $68,789.63. Despite losing over half its value, some experts say<\/a> bitcoin has remained resilient and may experience a comeback, especially as buyers spooked by the crypto market in general gravitate toward household names and more mature ecosystems, like bitcoin or ether.<\/p>\n Tesla disbanded its press department and could not be reached for comment.<\/p>\n<\/p><\/div>\n