- Tesla’s Bitcoin (BTC) holdings are now worth ~$1.2 billion after a 30% BTC price rally in Q2.
- A new US accounting rule (FASB) now allows Tesla to report the fair market value of its crypto holdings quarterly.
- Tesla has not bought or sold any Bitcoin for eight straight quarters, with its holdings unchanged at a cost basis of $184M.
Tesla’s significant Bitcoin holdings are now worth approximately $1.2 billion, thanks to a powerful 30% rally in the cryptocurrency’s price during the second quarter of this year.
This paper gain, highlighted by a recent change in US accounting rules, provides a bright spot in an otherwise challenging earnings report for the electric vehicle giant, which saw its core automotive revenue decline for a second straight quarter.
According to its latest earnings report, Tesla’s Bitcoin stash has benefited significantly from the crypto market’s recent strength. Bitcoin is currently trading at around $118,000, a substantial increase from its price of $83,000 on April 1.
Based on data from BitcoinTreasuries.Net, which lists Tesla as holding 11,509 BTC, the automaker is the tenth largest publicly traded company to hold the crypto asset on its balance sheet.
This gain is now more visible to investors due to a new rule approved by the Financial Accounting Standards Board (FASB). Effective from the first quarter of 2025, the rule allows companies to report the fair market value of their crypto holdings each quarter.
Previously, corporate holders like Tesla were required to report their crypto assets at the lowest value they reached during the holding period, a method that often failed to reflect market recoveries.
This meant that even if Bitcoin’s price rebounded, those gains would not be reflected on the balance sheet.
Now, Tesla’s Bitcoin gains can be recognized each quarter, providing shareholders with a much clearer view of the asset’s performance.
While its crypto holdings have appreciated, Tesla’s core business is facing significant headwinds.
The company reported second-quarter revenue of $22.5 billion, which, according to one set of figures in the source text, missed analyst estimates of $22.74 billion.
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