Will Tesla Dip Because Of Bitcoin? Meitu Lost On Its Bitcoin Bet, But Won With Ethereum

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Last Updated on 9 July 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Wall Street analysts reacted with surprise and disdain at the beginning of the year when Tesla CEO Elon Musk announced that his car company (the man has a few firms in his portfolio) was investing into Bitcoin directly. By end of March and certainly in April when Bitcoin hit $60k, Musk was hailed as a genius.

However, as Q2 ended and Bitcoin suffered on of its worst quarters ever, those same analysts are eager to find out whether or not the speculation of CNBC business analyst Kate Rooney is correct.

She thought that Tesla could have to put down an impairment charge soon and admit to the Securities and Exchange Commission that it has lost some 100 million dollars on its initial crypto investment. If it does, other Wall Street listed firms might wait a bit before taking the same jump.

Kare noted that:

Tesla holds crypto as an intangible asset and because of accounting rules, when Bitcoin’s value drops below a certain amount, companies have to mark that down in their financial statements.

Tesla says if Bitcoin’s price falls below the carry cost, or where Tesla bought it, at any time after they bought it, an impairment cost is recognized.

Advertentie.

Meitu wins on Ethereum

Another global firm that bet big on Bitcoin this year was HongKong company Meitu. The Chinese app maker invested some $100 million directly in crypto, recognizing the growing interest of its clientele in the world of digital currencies.

Earlier this week, the tech company admitted it lost some $17.3-million on its $50 million Bitcoin investment, but also that it won $14.7 million, in which it also invested a similar $50 million.

Diversification is once again key.

InkDropCreative / Depositphotos.com