Tesla Reports $112 Million Bitcoin Impairment as Q2 BTC Holdings Stay Unchanged

Tesla (NASDAQ: TSLA) kept its bitcoin holdings unchanged during the second quarter, maintaining a treasury of 11,509 BTC despite a sharp decline in the cryptocurrency’s price over the period. The electric vehicle maker recorded a $112 million after-tax impairment on its digital asset portfolio as bitcoin fell during the quarter, according to its latest earnings report.

Bitcoin dropped about 14% in the second quarter, sliding from roughly $83,000 at the beginning of April to around $58,000 by the end of June amid heightened macroeconomic uncertainty and weaker risk appetite. The cryptocurrency has since recovered, recently trading near $65,840, but accounting rules require companies to recognize losses based on quarter-end valuations.

Tesla has not bought or sold bitcoin since 2022, keeping its holdings steady for nearly four years. The company remains one of the largest publicly traded corporate bitcoin holders, although its position is considerably smaller than that of Strategy (NASDAQ: MSTR), which has continued to expand its bitcoin reserves.

The crypto-related impairment came as Tesla posted mixed financial results for the second quarter. The company reported adjusted earnings per share of $0.33, missing Wall Street expectations of $0.55. However, revenue reached $28.2 billion, exceeding analyst estimates of $27.6 billion.

Tesla also reported a gross margin of 16.8%, GAAP net income of $1.11 billion, and negative free cash flow of $1.1 billion during the quarter, reflecting continued pressure on profitability despite stronger-than-expected revenue.

Tesla first entered the cryptocurrency market in early 2021 with a $1.5 billion bitcoin purchase and briefly accepted bitcoin as payment for its electric vehicles before ending the option due to environmental concerns. After selling approximately 75% of its bitcoin holdings in 2022, the company has retained its remaining 11,509 BTC, signaling a long-term commitment to maintaining its digital asset exposure despite ongoing price volatility.