Tesla Inc. held its Bitcoin treasury position steady at 11,509 BTC throughout the second quarter, continuing an unchanged holding pattern that has persisted for nearly four years. The company recorded a $112 million after-tax loss on its digital asset holdings during the quarter as Bitcoin experienced significant volatility, declining from approximately $83,000 at the end of March to around $58,000 by June 30 before recovering above $65,000 in July.
The company has not engaged in any Bitcoin transactions since 2022. Tesla initially entered the cryptocurrency market with a $1.5 billion purchase in early 2021 and briefly accepted Bitcoin as payment for vehicles before suspending that option over environmental considerations. The company subsequently sold approximately 75% of its original position the following year, leaving the current 11,509 BTC as a largely passive balance-sheet holding.
Tesla’s cryptocurrency loss coincided with a mixed earnings report for the second quarter. The company generated revenue of $28.2 billion, exceeding analyst expectations of $27.6 billion, though adjusted earnings of $0.33 per share fell short of the $0.55 consensus estimate. GAAP net income totaled $1.11 billion with gross margin at 16.8%, while the company reported negative free cash flow of $1.1 billion as expenditures increased across artificial intelligence, robotics, and manufacturing initiatives.
The quarter demonstrated that Tesla’s Bitcoin holdings remain visible in earnings reporting despite the absence of active trading activity. Rather than expanding its reserve during both price rallies and declines, the company has maintained a passive stance toward its cryptocurrency allocation, transforming what originally represented a high-profile treasury strategy into a static long-term balance-sheet asset.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI