The American company Tesla is an electric car manufacturer run by Elon Musk.
Tesla is also known for adding the ability to pay for its products with bitcoins in March 2021. However, the company dropped the initiative in mid-May 2024.
Corporate Bitcoin Ownership
According to CoinGecko, Tesla is one of the largest bitcoin stocks among publicly traded companies after MicroStrategy, as well as mining companies MARA (formerly known as Marathon Digital) and Galaxy.
BitcoinTreasuries, which tracks the amount of the major cryptocurrency on company balance sheets, estimates that Tesla has about 28,842 thousand BTC.
Unlike MicroStrategy, MARA and Galaxy, Tesla has never disclosed both the exact number of bitcoins it has purchased and the prices at which it bought the first cryptocurrency coins. All that is known is that the company purchased an unnamed number of bitcoins worth $1.5 billion in February 2021.
In April 2021, Tesla reported that it had sold some of the coins, making a profit of $101 million in its first quarter 2021 results. And at the end of the second quarter of 2022, the company “disposed” of 75% of all bitcoins.
“As of the end of the second quarter, we have converted approximately 75% of our Bitcoin purchases into fiat currency,” Tesla said in its earnings report for the second quarter of 2022.
Tesla’s Bitcoin Assets Remained Stable in 2023
Tesla’s bitcoin assets remained stable at $184 million at the end of Q2 2023. This value is in line with the last three quarters, despite fluctuations in the market price of bitcoin. At the end of the second quarter, bitcoin was worth about $30,400, a modest increase from about $28,500 at the end of the first quarter. However, accounting standards prevent asset valuations from increasing due to rising prices if the assets are not sold, but allow for lower valuations if prices fall.
Since the second quarter in 2023, Tesla didn’t change its bitcoin holdings, refraining from buying or selling any digital assets. This followed the sale of more than 30,000 bitcoins, which made up about 75 per cent of its assets, for $936 million. Tesla originally invested $1.5 billion in bitcoin in early 2021, which significantly impacted bitcoin prices, in part due to CEO Elon Musk’s announcement that Tesla would accept bitcoins as payment for its cars.
Financials and market reaction
Despite stable bitcoin stocks, Tesla’s overall financial performance has been mixed. For Q2 2023, Tesla reported adjusted earnings per share (EPS) of $0.78, slightly below analysts’ consensus estimate of $0.80. The company’s revenue, however, beat expectations, coming in at $24.9 billion compared to the projected $24.2 billion.
Shares of Tesla rose 1% after the close of trading to $288.96, and are up more than 136% since the beginning of the year. This reflects positive investor sentiment despite a small earnings miss.
Comparison with previous reports
Comparing information from different sources shows some discrepancies in the reported numbers. One source indicated that Tesla’s bitcoin holdings totalled $640.86 million, which is significantly higher than the $184 million reported in the income statement. This discrepancy highlights the importance of verifying financial figures from multiple sources to get an accurate picture of the company’s digital asset portfolio.
Market conditions and strategic decisions
Tesla’s decision to keep its bitcoin stable came amid a volatile cryptocurrency market. At the time of the earnings report, bitcoin was trading at $65,750, reflecting a 3.65% drop in price over the past 24 hours. Bitcoin had a trading volume of around $36 billion, indicating continued significant market activity.
The stability of Tesla’s bitcoin holdings contrasts with the company’s broader challenges. Increased competition in the electric vehicle (EV) market, an aging model lineup, and CEO Elon Musk’s controversial statements have impacted Tesla’s market share. These factors have led to changes in the company’s competitive position and customer base.
Tesla’s position in the electric car market
Despite these challenges, Tesla remains the leader in the electric car market in the US. However, the company faces increasing competition from both established automakers and new entrants. These competitive pressures, combined with internal and external challenges, highlight the complex landscape in which Tesla operates.
Tesla’s Revenue Growth in 2024
Tesla reported a paper profit of $600 million from owning bitcoins in the fourth quarter of 2024. Under new rules, companies in the US can now reassess cryptocurrency holdings on a quarterly basis.From December 2024, accounting rules in the US allow companies to adjust the value of digital assets to market prices every quarter, writes The Block.
Before the rules went into effect last month the value of a company’s crypto assets was reduced in accounting if they were impaired during the reporting period, but crypto assets could not be revalued before sale if prices rose.Thus, the value of cryptocurrencies in company reports may have been less than market value. Thanks to the revaluation under the new rule the value of Tesla’s cryptocurrencies rose to $1.076 billion by the end of 2024, according to the company, while for several quarters before that, the value of the savings was not revalued and remained at $184 million.
How Many Bitcoins Does Tesla Have in 2025
According to data Arkham Intelligence, Elon Musk’s company owns 11 509 BTC, which at current exchange rates is valued at $1.2 billion. Bitcoin rose more than 50% in the last quarter of 2024 on the back of Donald Trump’s re-election as US president, with the asset rising another 12.7% since the start of 2025.
This article was originally Posted on Coinpaper.com
