1 August 2026
Electric Car Maker Tesla Still Hodls $1.26B Bitcoin
On Wednesday, the electric car maker said that in the second quarter, the value of Tesla’s (TSLA) Bitcoin holdings remained unchanged at $1.26 billion.
Tesla did not buy or sell any Bitcoin (BTC) in its first quarter and last year’s fourth quarter. Also, they didn’t record any impairments to the value of its holdings, as Bitcoin’s price was essentially flat from the end of the previous quarter to the subsequent one.
While in last year’s third quarter, Tesla did not reduce or add Bitcoin holdings but reported a $51 million impairment to reflect the decline in the price of Cryptocurrency.
As per the accounting rules for digital assets, if there is a fall in the price of an asset during a quarter, a company must report an impairment. But if the price surges, it is not reported as a gain on the balance sheet unless the asset is sold.
In February, Tesla made an announcement that it had purchased $1.5 billion worth of Bitcoin. During Q1, the company cut down its Bitcoin position by 10%, a sale that boosted that quarter’s earnings by $272 million. Tesla also didn’t buy or sell any Bitcoin in the second quarter.
According to FactSet, Tesla’s adjusted Q1 earnings per share came in at $3.22 versus the $2.26 expected by analysts. Revenue generated was $18.8 billion against the $17.85 billion expected.
The CEO of Tesla, Elon Musk, recently made headlines with his $43 billion offer to take Twitter (TWTR) private.
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