Tesla records $125 million Bitcoin loss as crypto drops 12%

Tesla reported an unrealised loss of $125 million on its cryptocurrency holdings in the first quarter, following a 12% decline in Bitcoin’s (CRYPTO:BTC) value during the same period, according to the company’s latest earnings report.

The electric vehicle manufacturer’s digital assets were valued at $951 million at the end of the quarter, representing an 11.6% decrease from the previous quarter.

Despite this decline, Tesla’s Bitcoin holdings remained unchanged at 11,509 BTC, as estimated by Arkham Intelligence.

The company has not provided a detailed breakdown of its cryptocurrency portfolio, but on-chain data suggests its entire position is in Bitcoin, which was valued at nearly $1.08 billion at the time of reporting.

Tesla’s unrealised loss contrasts with the $347 million gain it recorded in the fourth quarter of 2024.

The company’s Bitcoin journey began in January 2021 when it acquired $1.5 billion worth of the cryptocurrency.

The adoption of a new accounting standard now allows businesses to declare digital assets at market value and include them in net income, impacting how such losses and gains are reported.

“Bitcoin closed the first quarter down roughly 12%, resulting in unrealised losses for Tesla,” according to the earnings release.

However, Bitcoin rebounded by 13% in April, raising the value of Tesla’s holdings since the end of the quarter.

Tesla also reported a decline in revenue and earnings for the quarter, both falling short of analysts’ expectations.

Shares of Tesla rose 5.39% in after-hours trading, following a 4.60% increase during regular trading.

The TSLA stock was noted for its high quality score, reflecting operational efficiency and financial health, as of the latest update.

At the time of reporting, the Bitcoin (BTC) price was $93,667.02.