Elon Musk’s celebrated bet on Bitcoin has taken Tesla’s shareholders on a veering, lurching, off-road adventure. In the roughly seven months since the EV-maker made its famous $1.5 billion purchase––praised by Musk as a superior, potentially profit-spinning use of corporate cash––its realized and paper profits soared to over $1.4 billion at Bitcoin’s $65,000 peak on April 14, only to virtually disappear at the signature cryptocurrency’s recent low of $28,894 in late June.

By the close of Tesla’s second quarter on June 30, Bitcoin had rebounded to $35,041. Tesla had shrewdly unloaded 4,600 coins or 10% of its stake in at well over $50,000 the first quarter, booking a gain of $128 million. At the end of Q2, its carrying cost was, and still is, $1.310 billion, or $31,119 per coin. Hence, Tesla was already then harboring a total a total gain of $3,922 per Bitcoin for the trove in its treasury or $164 million, plus the $128 million booked in Q1, for a total “profit” of $292 million. Source As Bitcoin soars above $50,000, Elon Musk’s profit jumps by 250% | Fortune

By block head

Block Head is a blockchain journalist.