Tesla owns $2 billion in bitcoin. Crypto volatility has taken a toll

The EV maker disclosed in its annual report to the Securities and Exchange Commission that it posted a $101 million impairment loss due to its investment in bitcoin. The loss is essentially an accounting issue, and it does not impact Tesla’s overall financial health all that much.

Bitcoin prices rallied Monday as well, gaining about 4% to around $43,000. But the price of one bitcoin has fallen more than 7% so far this year and is down roughly 40% from its all-time high of just under $69,000 in November.

Tesla made an initial $1.5 billion investment in bitcoin in early 2021. Musk has often tweeted about his support for the top crypto as well as for other smaller, meme currencies such as dogecoin.

Still, Tesla continues to be bullish on bitcoin and other cryptos.

“We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash,” Tesla said in the SEC filing.

“As with any investment and consistent with how we manage fiat-based cash and cash equivalent accounts,” the company noted, “we may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of market and environmental conditions.”