Tesla Inc. revealed that its bitcoin holdings contributed an $80 million profit in the third quarter, benefiting from a rise in the cryptocurrency’s value during the period. As of the end of Q3, the company maintained a substantial position of 11,509 bitcoins, which were valued at approximately $1.35 billion, although the current valuation has dipped slightly.
The increase in bitcoin’s price played a notable role in Tesla’s financial results, alongside the company’s robust operational performance. Tesla reported third-quarter revenue of $28.1 billion, surpassing analysts’ expectations of $26.36 billion. However, adjusted earnings per share (EPS) came in at $0.50, below the anticipated $0.54. These adjusted figures exclude gains from digital assets like bitcoin.
In a broader financial context, Tesla posted an adjusted EBITDA of $4.3 billion for the quarter and held $41.6 billion in total cash and equivalents at quarter-end, underscoring a strong liquidity position. The $80 million bitcoin gain is a relatively small but positive contributor to the company’s overall financial health.
This quarter’s results reflect new accounting guidance from the Financial Accounting Standards Board (FASB), which now requires companies to report gains or losses on bitcoin holdings each quarter. Previously, firms were mandated to mark down digital asset values to the lowest price within the reporting period, potentially understating gains when prices rebounded.
Following the earnings release, Tesla’s shares saw a modest decline in after-hours trading, settling at $434 per share. Investors appear to be digesting the mixed results—strong revenue growth tempered by slightly lower-than-expected EPS and cautious sentiment in the broader market.
Tesla’s ongoing bitcoin investment continues to attract attention as the electric vehicle maker balances its core business growth with exposure to digital assets. The latest quarterly update provides transparency on how fluctuations in cryptocurrency markets impact Tesla’s financial statements under current accounting standards.
