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

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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.

Tesla Facing Up To $100,000,000 Bitcoin Impairment Loss In Q2 Amidst #Crypto Price Slumphttps://t.co/ip5tcji8pp

— XRPcryptowolf (@XRPcryptowolf) July 6, 2021

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.

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.

Meitu Facing Impairment Loss Of Over $17 Million on #Bitcoin Investment
► https://t.co/2Eoq59T0AW pic.twitter.com/Bj5edNKvLB

— Decrypt (@decryptmedia) July 8, 2021

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.

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