Tesla maintained its Bitcoin holdings at 11,509 BTC during the second quarter, despite a 14% decline in the cryptocurrency’s value over the three-month period. The company reported a mixed earnings performance, beating revenue expectations but falling short on profitability estimates.
The electric vehicle giant recorded an after-tax impairment loss of $112 million on its Bitcoin holdings, according to its latest financial report. Tesla has not added to or reduced its Bitcoin position since 2022.
Bitcoin started the quarter trading near $83,000 before falling to around $58,000 by the end of June as uncertainty across global markets pressured risk assets. The cryptocurrency has since recovered and was recently trading near $65,840.
Tesla remains one of the biggest publicly listed corporate Bitcoin holders, although its holdings are considerably smaller than those of companies such as Strategy, which has continued making large Bitcoin purchases.
The company’s crypto disclosure came as part of a broader second-quarter earnings update. Tesla reported adjusted earnings per share of $0.33, missing analysts’ expectations of $0.55. Revenue, however, exceeded forecasts, reaching $28.2 billion compared with the $27.6 billion consensus estimate.
The automaker posted a gross margin of 16.8%, while GAAP net income totaled $1.11 billion. Tesla also reported a quarterly free cash flow deficit of $1.1 billion.
Under current accounting standards, companies holding cryptocurrencies must recognize losses when the market value of their digital assets declines. Although Bitcoin recovered from its June lows and moved back toward $65,840, Tesla’s impairment charge reflects the lower valuation of its holdings during the quarter.
Tesla’s Bitcoin strategy has remained unchanged for almost four years. The company first purchased $1.5 billion worth of Bitcoin in early 2021 and briefly accepted the cryptocurrency as payment for vehicle purchases before ending the program due to environmental concerns.
The company later sold about 75% of its Bitcoin holdings in 2022 but has continued to hold its remaining 11,509 BTC without making further transactions.
