Authorities say that Bitcoin’s brutal quarter may cause Tesla to report a loss of up to $100 million in the second quarter

The price plunge of Bitcoin in the second quarter has led experts to speculate that Tesla may have to report a loss of up to $100 million in the second quarter.

As the price of Bitcoin recently dropped to its lowest level in January, CNBC business analyst Kate Rooney asserted on July 6 that Tesla may face “allegations of impairment”-requiring it to disclose to the US Securities and Exchange Commission In the report drawdown (Securities and Exchange Commission).

She pointed out that as the number one Tesla Disclosure of its $1.5 billion bitcoin purchases in February, Onlookers believe that electric car manufacturers may be in trouble at the end of the quarter.

“Tesla regards cryptocurrency as an intangible asset, and due to accounting rules, when the value of Bitcoin falls below a certain amount, the company must write down in its financial statements,” Rooney said, adding:

“Tesla stated that if the price of bitcoin is lower than the cost of holding, or where Tesla buys bitcoin, at any time after their purchase, the cost of impairment will be recognized.”

The analyst claimed that an unnamed source estimated that the impairment charges may cause Tesla’s book loss to be between $25 million and $100 million.

However, Rooney added that Tesla cannot increase the price of BTC held by Tesla until the position is realized in the form of sales.

In recent months, Tesla CEO Elon Musk has become a highly polarized figure in the crypto community. The company’s Bitcoin investment and Support BTC payment Help ignite the asset’s rebound to a record high.

However, due to concerns about Bitcoin, Tesla suspended BTC payments. The environmental impact of mining, And Musk insists on Twitter-based Dogecoin mission, Business giants have Out of favor With most of the encryption community.

About 11 hours ago at the time of writing, Reddit user “StablecoinsFraud” Post They claimed that Musk deleted a screenshot of a tweet after pushing up the price of BTC. “Elon Musk deleted a post he posted last night that pushed up the price of Bitcoin. Is anyone in his ear?” they wrote.