Tesla holds bitcoin treasury steady, reports $112M impairment loss
Tesla reported a $112 million impairment loss on its bitcoin holdings in its second-quarter earnings, despite maintaining its position of 11,509 BTC. The company has not bought or sold any bitcoin since 2022, and the loss reflects accounting requirements for digital asset valuation during a period of market volatility.
Why it matters
The report highlights the ongoing impact of volatile cryptocurrency markets on corporate balance sheets and underscores the challenges companies face under current accounting rules for digital assets.
The electric vehicle maker reported an after-tax impairment loss of $112 million on its digital asset holdings, according to its latest earnings release. Tesla has neither bought nor sold any bitcoin since 2022.
Bitcoin fell from about $83,000 at the start of the second quarter to roughly $58,000 by the end of June amid broader macroeconomic uncertainty and volatility across risk assets. The cryptocurrency was recently trading at $65,840.
Tesla remains one of the largest publicly traded corporate holders of bitcoin, though its holdings are significantly smaller than those of firms such as Strategy (MSTR), which has continued to aggressively accumulate the cryptocurrency.
The company's crypto update came alongside mixed second-quarter financial results. Tesla reported non-GAAP earnings per share of $0.33, missing analyst expectations of $0.55. Revenue came in at $28.2 billion, topping consensus estimates of $27.6 billion.
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