Tesla Keeps Bitcoin Holdings Unchanged Despite $112M Crypto Impairment Hit

Tesla kept its Bitcoin treasury unchanged throughout the second quarter, holding 11,509 BTC as the cryptocurrency dropped 14% during the period. The company’s latest earnings report showed mixed results, with revenue exceeding expectations while profits fell short of forecasts.

The electric vehicle manufacturer reported a $112 million after-tax impairment charge on its digital asset holdings in its quarterly earnings release. Tesla has not purchased or sold any Bitcoin since 2022, leaving its cryptocurrency reserves unchanged.

Bitcoin declined from approximately $83,000 at the beginning of the second quarter to around $58,000 by the end of June as macroeconomic uncertainty and broader risk-asset volatility weighed on markets. The cryptocurrency has since recovered and was recently trading near $65,840.

Tesla remains among the largest publicly traded companies holding Bitcoin, although its position is much smaller than companies such as Strategy, which has continued expanding its Bitcoin reserves through additional purchases.

The company’s Bitcoin update came alongside uneven second-quarter financial results. Tesla reported adjusted earnings per share of $0.33, below Wall Street expectations of $0.55. However, revenue reached $28.2 billion, surpassing analyst estimates of $27.6 billion.

Tesla posted a gross margin of 16.8% and reported GAAP net income of $1.11 billion. The company also recorded negative free cash flow of $1.1 billion during the quarter.

Under existing accounting rules, companies holding digital assets are required to record losses when the value of those assets declines. Although Bitcoin has rebounded from its late-June lows and recently traded around $65,840, Tesla’s impairment charge reflects the lower value of its holdings during the reporting period.

Tesla’s Bitcoin holdings have remained unchanged for nearly four years. The company initially invested $1.5 billion in Bitcoin in early 2021 and briefly allowed customers to pay for vehicles using the cryptocurrency before ending the option due to environmental concerns.

In 2022, Tesla sold approximately 75% of its Bitcoin holdings but retained its remaining 11,509 BTC, which it continues to hold today.