Electric car giant Tesla Inc. said on Tuesday that it lost money on its crypto investments in the first quarter, even though it did not buy or sell any Bitcoin during that time.
What happened: Tesla’s financial statement revealed $951 million in crypto assets, which dropped 11.6% from the previous quarter, based on the company’s after-hours earnings release
The company also mentioned a loss based on the current market value of its cryptocurrency assets, which is $125 million, which rose about $347 million in the fourth quarter of 2024
Tesla does not provide details about its cryptocurrency holdings. However, Arkham Intelligence, a company that tracks blockchain data, believes that all of Tesla’s crypto holdings are in Bitcoin, worth nearly $1.076 billion at the time of reporting. Tesla still holds the same amount of 11,509 BTC, compared to the previous quarter.
Bitcoin ended the first quarter with a decline of approximately 12%, bringing about unrealised losses for Tesla. On the other hand, with the apex cryptocurrency recovering 13% in April, its present worth, as mentioned by Arkham, was greater
Why It Matters: With the new accounting rules for cryptocurrencies, businesses can report their holdings based on current market value and include them as part of their profit.
Tesla’s Bitcoin began its path in January 2021, at the time it initially purchased the $1.5 billion value of the leading cryptocurrency.
On the other hand, the Elon Musk-led company disclosed an income and profit drop in the first quarter, both of which were below what experts had expected.
Price Action: At the time of reporting, Bitcoin was being traded at $93,315.25, up 5.62% in the past 24 hours. Tesla’s stock went up 5.39% in after-hours trading, following a 4.60% increase to $237.97 during regular trading on Tuesday.
At the time of reporting, Tesla’s stock has a high-quality score, which reflects the company’s efficiency and financial strength. To compare, Strategy Inc. is the largest company holding Bitcoin.
Read also:- US-China Trade Optimism Sparks Crypto Rally: Expert Targets $95.6 K-$98.3 K for Bitcoin
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