Tesla’s Bitcoin Position Unchanged
Tesla maintained its bitcoin holdings at exactly 11,509 coins throughout the fourth quarter of 2025. The company didn’t buy or sell any bitcoin during those three months, which is interesting when you think about the market conditions at the time. They just held steady, watching the market move around them.
I suppose there’s something to be said for that approach – not panicking when prices are falling. But then again, maybe they should have done something. It’s hard to know what the right move is with crypto these days.
The Price Decline Impact
Here’s where things get painful. Bitcoin’s price dropped significantly during that quarter, falling from around $114,000 to about $88,000. That’s a substantial decline, roughly 23% if my math is right.
Because of accounting rules, Tesla had to recognize an impairment loss on its digital assets. The company booked an after-tax loss of approximately $239 million. That’s not pocket change, even for a company of Tesla’s size.
The way these accounting rules work is that companies have to mark down their digital assets when prices fall, but they can’t mark them up when prices rise until they actually sell. It creates this asymmetry that can make holdings look worse during downturns.
Historical Context of Tesla’s Bitcoin Strategy
Tesla’s journey with bitcoin has been, well, eventful. Back in February 2021, the company first disclosed owning 43,200 bitcoin, which was worth about $1.7 billion at the time. That was a bold move that got everyone talking.
They sold a small portion shortly after, testing the waters for liquidity. But then, in what many consider poor timing, they sold about 75% of their stack near the 2022 bear market bottom. That sale happened when bitcoin prices were quite low.
Since that 2022 sale, Tesla’s holdings have remained relatively stable. They’ve been sitting on these 11,509 coins for a while now, through various market cycles.
Overall Financial Performance
Looking at Tesla’s broader financial picture for Q4 2025, the company reported revenue of $24.9 billion. That was slightly below analyst estimates of $25.1 billion, but not dramatically so.
On the earnings side, Tesla reported adjusted earnings per share of $0.50, which actually beat the consensus forecast of $0.45. So despite the bitcoin losses, the core business performed reasonably well.
The market seemed to react positively to the overall results. Tesla’s stock was up 3.4% in after-hours trading following the earnings release.
It’s worth noting that while $239 million is a significant impairment loss, it represents just one aspect of Tesla’s financial picture. The company’s bitcoin holdings now represent a much smaller percentage of its overall assets compared to when they first made that big purchase in 2021.
What happens next with Tesla’s bitcoin strategy? That’s the question. Will they continue holding through market cycles, or might they eventually exit their position entirely? Only time will tell, but for now, they’re holding steady despite the recent losses.
