Tesla Racks Up $80M Bitcoin Windfall in Q3 - Holds Firm Amid Crypto Volatility
Tesla's bitcoin bet pays off big time - the electric vehicle maker just scored an $80 million paper gain on its cryptocurrency reserves during the third quarter.
HOLDING STRONG
Despite the tempting profits, Elon Musk's company didn't sell a single satoshi - maintaining its full bitcoin position while traditional treasury managers would have likely cashed out to please shareholders. The move signals continued confidence in bitcoin's long-term value proposition, even as regulatory headwinds swirl.
STRATEGIC PATIENCE
While Wall Street analysts scramble to justify their conservative portfolio allocations, Tesla demonstrates the power of conviction investing in digital assets. The $80 million gain represents just the latest validation of their forward-thinking treasury strategy - though some traditional finance veterans probably still think bitcoin belongs in the 'gambling' section of their spreadsheets.
In a world where most corporations play it safe with bonds and cash equivalents, Tesla continues to rewrite the corporate treasury playbook - one blockchain confirmation at a time.
Revised Accounting Lifts Tesla’s Q3 Bitcoin Valuation To Its Highest Level In Four Years
Tesla began using new fair-value accounting rules earlier this year, which require its digital asset holdings to be reported at current market prices rather than at historical cost.
The adjustment allowed the company to recognize the $80m gain under “other income,” its strongest quarter for Bitcoin revaluation since 2021.
Its current holdings make it the 11th largest corporate Bitcoin owner in the world, ranking behind MicroStrategy, Galaxy Digital, and Block but ahead of Hut 8 Mining and other institutions. It was also Tesla’s second consecutive quarter of Bitcoin gains, reflecting the recovery in digital asset markets through 2025.
Tesla Says Surge In R&D And AI Investment Drove 50% Jump In Operating Costs
Bitcoin-related gains and losses are not included in Tesla’s adjusted earnings per share. The company reported total revenue of $25.18b, up from a year earlier. Automotive revenue ROSE 6% to $21.2b, while total net income fell 37% to $1.37b, or 39 cents per share, compared with $2.17b, or 62 cents per share, in the same quarter last year.
Tesla attributed the decline in profitability to lower electric vehicle prices and higher operating costs, which rose by more than 50%. The company said the increase was partly due to investments in artificial intelligence and other research and development projects.
The report signals Tesla’s continued long-term view on Bitcoin, which the company has previously described as “a liquid alternative to cash.”
It has not made any new purchases since early 2022, when it briefly sold a portion of its holdings to test liquidity before reclassifying Bitcoin as a strategic treasury asset.
Automaker Keeps Bitcoin Holdings Steady Despite Volatile Market Swings Since 2021 Purchase
Tesla first purchased $1.5b worth of Bitcoin in Feb. 2021, a move that marked one of the earliest corporate endorsements of the cryptocurrency by a major US public company. Since then, the automaker has kept its digital asset position stable despite periods of significant market volatility.
Meanwhile, a wallet linked to SpaceX, another Musk-led company, moved about $268m worth of Bitcoin to two addresses on Tuesday, according to data from Arkham Intelligence.
On-chain analyst Ai Yi said the transactions followed a three-month pause and were likely part of internal fund management rather than an asset sale.
