Tesla Retains Bitcoin Reserve Despite $112 Million Mark-to-Market Loss

The reported loss reflects the transition to the Financial Accounting Standards Board’s updated accounting rules, which require digital assets to be valued at current market prices at the end of each quarter. Because Bitcoin prices dipped as low as $58,000 in late June before a modest recovery, the mark-to-market valuation impacted Tesla’s bottom line, even though no coins were sold. Arkham Intelligence data confirms the company remains one of the largest corporate holders of the cryptocurrency, with the current position valued at approximately $758 million based on recent trading prices.

While the crypto-related loss weighed on the quarterly results, Tesla’s broader financial performance presented a mixed picture. The company exceeded revenue expectations by generating $28.2 billion, bolstered by 480,126 vehicle deliveries. However, profitability metrics faced headwinds, with adjusted earnings of $0.33 per share missing analyst targets. Significant capital expenditure, directed toward artificial intelligence infrastructure and robotics development, pushed free cash flow into negative territory at $1.1 billion. Despite these pressures, Tesla continues to prioritize its long-term manufacturing and AI projects over liquidating its remaining digital asset reserve.