According to Tesla's second-quarter earnings statement, approximately 75% of bitcoin purchases have been converted into fiat money.
Early last year, the company invested $1.5 billion in bitcoin.
As a result of a huge rally in 2021, the value of the digital currency has plummeted this year.
Tesla has already sold three-quarters of its bitcoin holdings since it invested $1.5 billion in the digital currency early last year.
Tesla reported on Wednesday that approximately 75% of its Bitcoin purchases had been converted into fiat currency. It added $936 million to its balance sheet as a result of those sales.
Elon Musk, Tesla's CEO, was a heavy crypto booster during last year's rally, frequently tweeting about cryptocurrencies. Over the past four months, bitcoin's price has lost half its value.
During the first quarter of 2021, Tesla's fair market value of its bitcoin holdings was $2.48 billion, and it ended the year around $2 billion.
Bitcoin started the second quarter at close to $46,000 and ended below $19,000, but the company didn't specify at what price it sold or the size of its impairment.
According to Barclays' Brian Johnson, Tesla will see a $460 million bitcoin impairment as a result of the recent selloff.
In an earnings call on Wednesday, Musk said, "We sold a bunch of our bitcoin holdings because we were unsure when the Covid lockdowns in China would end.
Tesla is open to increasing its crypto holdings in the future, he added. "This is not some verdict on bitcoin," he said.
Musk, however, described bitcoin as "a sideshow to a sideshow" when asked about bitcoin's inflationary hedge potential.
Tesla went big on bitcoin in the first quarter of 2021 as part of its efforts to become more flexible, diversify, and increase returns on cash.
As the currency ran up, the company sold 10% and generated $101 million in profits
In response to the environmental impact of mining bitcoin, Musk announced Tesla would no longer accept bitcoin for car purchases.