I saw an interesting talk the other day where some guy laid out a ‘thesis’ for Tesla doing what they are doing (as well as diversifying etc) with respect to Bitcoin. And it’s related to Accounting/ Tax for companies. If I got it right: basically they can offset any loss in value of this ‘asset’ as a ‘loss’ in income in their balance sheet (which thus offsets against their actual profit nicely, bringing it down in the books)...but not the opposite for gain in value of this ‘asset’ (unless in the last eg quarter they registered a loss, then they are forced to add the gain up to the initial asset value as an ‘income’ but no more, for that quarter only). He further speculated that should the former happen (eg Bitcoin takes a dump, and it looks like their profits are very low due to this mechanism) that could negatively affect their stock price...which may be seen as bad, unless they secretly are also planning on buying back their own stock. If Bitcoin hits the moon, they are not taxed (unless they sell). Sounds like a win/win. Wish I could find the link... lots of ifs and maybes ...maybe it’s all a bunch of crap, certainly there are some accountants here...if that is correct, I can certainly see why the whales are swimming in these waters. Feel free to correct me.
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