It hasn't been a good run for Bitcoin for Elon Musk.
It was reported earlier this year that both individuals had suffered significant losses on their bitcoin investments; hence, a significant portion of the $1.5 billion that was first purchased at the beginning of 2021 was finally sold. Despite this, Musk made the decision to keep some of the bitcoin, amounting to about $250 million worth of it, because he was confident that bitcoin would make enough of a comeback to allow him to potentially see some level of return on his investment. He knew that bitcoin would make a comeback because he was confident that it would.

Nevertheless, it would appear that the money that he is holding onto was acquired through an impairment loss of 170 million dollars. The Tesla earnings report for the third quarter is where the company has revealed this piece of information. Even though the electric vehicle company was able to turn a profit of approximately $64 million after converting some of the bitcoin it had purchased back into fiat currency, the business still managed to incur a loss of approximately $170 million over the course of the previous nine months. Things have not quite returned to normal for the company. It's a terrible and revolting sight to see.

It has been reported that the corporation spent close to one billion dollars worth of bitcoins during the second quarter of the year. [Citation needed] [Citation needed] Contrary to popular belief, this wasn't necessarily done because bitcoin was tanking; rather, the company needed quick cash due to ongoing COVID-based lockdowns occurring in China, which is where the electric car manufacturer does a significant amount of business on a regular basis.

The following was mentioned by Tesla officials in a statement:

According to the applicable accounting standards, digital assets are categorized as intangible assets with an indefinitely long life. As a result, we are required to record an impairment charge whenever their fair values fall below their carrying values for such assets at any point in time after their acquisition. On the other hand, we are not permitted to record an upward revision for any market price increases until the asset is sold. Even if there is an increase in the total market value of these assets, the possibility exists that these charges will have a negative effect on our profitability in the periods in which such impairments occur for any digital assets that are held now or in the future.

Maintaining All of the Businesses in One Location?
As the state of the economy continues to deteriorate, Elon Musk has stated that he is contemplating the formation of a super conglomerate by combining all of the businesses that he currently owns under a single stock umbrella. However, he has not yet made a final decision on this matter. During the course of the interview, he stated:

My understanding of the overlap is lacking at this point. It is not exactly zero, but I believe we are reaching that point. There is no cause for concern on my part.

Musk made the decision almost two years ago to enable bitcoin holders to use their assets to purchase electric cars; however, he rescinded this decision later due to concerns about the cost and availability of energy.