Key facts
- Tesla's bitcoin holdings remained steady at 11,509 BTC throughout the second quarter.
- The cryptocurrency's price declined 14% during the period.
- Tesla recorded an after-tax impairment loss of $112 million on its digital asset holdings.
- The company has not engaged in bitcoin transactions since 2022.
- Tesla's Q2 revenue exceeded expectations at $28.2 billion, while adjusted EPS missed forecasts at $0.33.
Tesla maintained its bitcoin treasury unchanged at 11,509 BTC during the second quarter, despite a 14% decline in the cryptocurrency's price. The electric vehicle manufacturer reported an after-tax impairment loss of $112 million on its digital asset holdings, reflecting the value decrease during the reporting period. This marks the first impairment loss recognized by Tesla on its bitcoin holdings since 2022, as the company has neither bought nor sold any bitcoin since that year.
Bitcoin experienced volatility in the second quarter, falling from approximately $83,000 at the start of the period to around $58,000 by the end of June, influenced by macroeconomic uncertainty and broader risk asset volatility. The cryptocurrency has since rebounded and was recently trading at $65,840.
Tesla's crypto update was released alongside mixed second-quarter financial results. The company reported revenue of $28.2 billion, surpassing consensus estimates, but its adjusted earnings per share came in at $0.33, missing analyst expectations. Gross margin stood at 16.8%, with GAAP net income totaling $1.11 billion. Tesla also reported negative free cash flow of $1.1 billion for the quarter.
Under current accounting standards, companies must recognize declines in the value of digital assets through their earnings. Tesla initially purchased $1.5 billion worth of bitcoin in early 2021 and briefly accepted it as payment before halting the option. While the company sold a significant portion of its holdings in 2022, it has held the remaining 11,509 BTC steady since then.