Tesla holds 11,509 BTC steady as bitcoin falls 14%, records $112M loss
In brief
- Tesla held 11,509 BTC flat through Q2 as bitcoin declined 14%
- Digital asset impairment loss totaled $112 million after-tax
- Revenue beat at $28.2 billion; non-GAAP EPS missed at $0.33
- No bitcoin trades since 2022, when Tesla sold 75% of holdings
Steady Holdings Through Volatility
Bitcoin fell from about $83,000 at the start of the second quarter to roughly $58,000 by the end of June, creating a challenging environment for corporate holders. Tesla's decision to hold its position reflects a more conservative stance than it took earlier in its crypto journey.
Tesla has neither bought nor sold any bitcoin since 2022, when it sold roughly 75% of its holdings. The company initially purchased $1.5 billion worth of bitcoin in early 2021 and briefly accepted the cryptocurrency as payment for its vehicles before suspending the option over environmental concerns.
Mixed Earnings Results
Tesla's second-quarter earnings painted a complex picture. Revenue came in at $28.2 billion, topping consensus estimates of $27.6 billion, but profitability fell short. Tesla reported non-GAAP earnings per share of $0.33, missing analyst expectations of $0.55.
Gross margin was 16.8%, while GAAP net income totaled $1.11 billion. The company also reported negative free cash flow of $1.1 billion for the quarter, signaling cash pressures alongside operational challenges.
Corporate Bitcoin Holdings in Context
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 divergence in strategy reflects different corporate philosophies on digital asset positioning.
