Iris Coleman
Oct 23, 2025 17:26
Tesla’s Q3 report reveals an $80 million profit from Bitcoin due to price gains, maintaining its long-term crypto strategy. The company continues to hold 11,509 BTC.
Tesla’s latest financial report for the third quarter of 2025 reveals a significant $80 million profit from its Bitcoin (BTC) holdings, according to CryptoNews. The electric vehicle giant continues to show confidence in its long-term crypto strategy by maintaining its Bitcoin reserves.
Bitcoin Valuation Boosts Q3 Performance
The company’s quarterly report, released on October 22, indicates that Tesla still holds 11,509 Bitcoin, now valued at $1.31 billion. This marks an increase from $1.23 billion in the previous quarter, primarily due to Bitcoin’s price appreciation. Tesla’s holdings have remained unchanged since early 2022, yet their valuation has soared amidst a broader crypto market rally this year.
Accounting Changes Enhance Bitcoin Valuation
In a strategic accounting shift, Tesla adopted new fair-value accounting rules at the start of the year. These rules require digital assets to be reported at current market prices rather than historical cost, allowing Tesla to recognize an $80 million gain as “other income.” This adjustment marks Tesla’s most robust quarter for Bitcoin revaluation since 2021.
Currently, Tesla ranks as the 11th largest corporate Bitcoin holder globally, trailing companies like MicroStrategy and Galaxy Digital. This quarter marks Tesla’s second consecutive period of Bitcoin gains, mirroring the recovery of digital asset markets through 2025.
Impact of R&D and AI on Operating Costs
Despite the Bitcoin-related gains, Tesla’s total net income fell 37% to $1.37 billion, or 39 cents per share, compared with $2.17 billion, or 62 cents per share, in the same quarter last year. The company reported total revenue of $25.18 billion, with automotive revenue increasing by 6% to $21.2 billion.
The decline in profitability was attributed to lower electric vehicle prices and a more than 50% increase in operating costs, driven by investments in artificial intelligence and other R&D projects. Notably, Bitcoin-related gains and losses are excluded from Tesla’s adjusted earnings per share.
Bitcoin Holdings Remain Steady
Tesla’s steadfast approach to its Bitcoin holdings reflects its view of Bitcoin as a “liquid alternative to cash.” Since its initial $1.5 billion Bitcoin purchase in February 2021, the automaker has maintained its digital asset position despite market volatility.
Meanwhile, a wallet associated with SpaceX, another company led by Elon Musk, moved approximately $268 million worth of Bitcoin to two different addresses. This transaction, reported by Arkham Intelligence, followed a three-month pause and was interpreted as part of internal fund management rather than an asset sale.
Image source: Shutterstock
Credit: Source link
