Tesla Reports $100 Million Loss on Bitcoin Investment... Cryptocurrency Remains Stable

by Paek Jongmin

Published 08 Jul.2021 05:51(KST)

Updated 08 Jul.2021 10:20(KST)

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Robinhood Expected to Pay Up to $15 Million Fine Related to Cryptocurrency Trading

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Baek Jong-min] On the 7th (local time), the cryptocurrency market recorded a slight decline, but the cryptocurrency exchange Coinbase showed a significant surge. Tesla faced a situation where it had to reflect a $100 million loss in its books in the second quarter due to the decline in Bitcoin.

As of 4:25 PM that day, Bitcoin was trading at $34,585, up 1.77%, Ethereum was up 1.87% at $2,365, and Dogecoin was down 0.6% at 23.1 cents.

Among altcoins, Polkadot rose sharply by 9.3%, and Solana showed strength with an 11.9% increase.

The largest U.S. cryptocurrency exchange Coinbase surged 7%, recovering its listing reference price of $250. On the same day, Oppenheimer maintained a buy rating on Coinbase and raised its target price from $434 to $444.

The free stock and cryptocurrency trading app Robinhood is expected to pay a settlement amount of $10 million to $15 million to New York authorities over allegations of money laundering in the cryptocurrency sector.

The cryptocurrency media Decrypt described this settlement as demonstrating the regulatory risks in the cryptocurrency sector.

Tesla's stock price fell about 2% following reports that a $100 million loss was expected due to the decline in Bitcoin prices. According to CNBC, Tesla must reflect the difference between the lowest Bitcoin price recorded last month at $28,000 and its purchase price as a loss in its accounting books.

Although the Bitcoin price has recovered Tesla's purchase price, it cannot be recorded as a profit in the books unless sold. Tesla purchased $1.5 billion worth of Bitcoin in the first quarter.