Tesla's Bitcoin holdings: How much BTC will there be in 2025?

The American company Tesla is an electric car manufacturer led by Elon Musk. Tesla is also known for adding the ability to pay for products with bitcoin in March 2021. However, the company canceled this initiative in mid-May 2024. Company's ownership rights of Bitcoin According to CoinGecko, Tesla is one of the largest Bitcoin stocks among publicly traded companies after MicroStrategy, as well as mining companies MARA (formerly known as Marathon Digital) and Galaxy. BitcoinTreasuries, a company that tracks large amounts of cryptocurrencies on the company's balance sheet, estimates that Tesla owns approximately 28.842 thousand BTC. Unlike MicroStrategy, MARA, and Galaxy, Tesla has never disclosed the exact amount of bitcoin they have purchased and the price at which they acquired their initial cryptocurrency holdings. All that is known is that the company bought an unspecified amount of bitcoin worth $1.5 billion in February 2021. In April 2021, Tesla reported that they had sold some currency, making a profit of $101 million in the first quarter of 2021. And at the end of the second quarter of 2022, the company "sold" 75% of the total bitcoin. Tesla stated in its Q2 2022 earnings report: "As of the end of Q2, we have converted approximately 75% of the purchased Bitcoin into fiat currency". Tesla's Bitcoin assets remain stable in 2023 Tesla's bitcoin holdings remained stable at $184 million at the end of the second quarter of 2023. This value is consistent with the last three quarters, despite market price fluctuations of bitcoin. At the end of the second quarter, bitcoin was valued at around $30,400, a modest increase from around $28,500 at the end of the first quarter. However, accounting standards prevent asset valuation from increasing due to price rises if the assets are not sold, but allow for lower valuation if prices fall. Since the second quarter of 2023, Tesla has not changed its bitcoin holdings, restraining from buying or selling any digital assets. This comes after selling over 30,000 bitcoins, accounting for about 75 percent of the company's assets, at a price of $936 million. Tesla initially invested $1.5 billion in bitcoin in early 2021, which significantly impacted the price of bitcoin, partly due to CEO Elon Musk's announcement that Tesla would accept bitcoin as a payment method for its vehicles. Financial and market reactions Although Bitcoin stock is stable, Tesla's overall financial performance is still not consistent. In the second quarter of 2023, Tesla reported adjusted earnings per share (EPS) of 0.78, slightly lower than analysts' consensus estimate of 0.80. However, the company's revenue exceeded expectations, reaching $24.9 billion compared to the expected $24.2 billion. Tesla stock rose 1% after the close of trading to $288.96 and is up more than 136% since the beginning of the year. This reflects positive investor sentiment despite a small revenue shortfall. Compare with previous reports Comparing information from multiple sources reveals some differences in the reported figures. One source indicates that Tesla's total bitcoin holdings are $640.86 million, significantly higher than the $184 million reported in the income statement. This difference highlights the importance of verifying financial figures from multiple sources to obtain an accurate picture of the company's digital asset portfolio. Market conditions and strategic decisions Tesla's decision to hold bitcoin stable comes amid volatile cryptocurrency markets. At the time of income reporting, bitcoin is trading at $65,750, reflecting a 3.65% decrease in the past 24 hours. Bitcoin has a trading volume of around $36 billion, indicating significant market activity. The stability of Tesla's bitcoin holdings contrasts with the company's larger challenges. Increasing competition in the electric vehicle market (EV), legacy car models, and controversial statements from CEO Elon Musk have impacted Tesla's market share. These factors have led to changes in the company's competitive position and customer base. Tesla's position in the electric vehicle market Despite these challenges, Tesla remains the leading electric car company in the United States. However, the company faces increasing competition from both traditional automakers and new entrants. These competitive pressures, combined with internal and external challenges, highlight the complex environment in which Tesla operates. Tesla's revenue growth in 2024 Tesla reported a profit on paper of $600 million from owning bitcoin in the fourth quarter of 2024. Under new regulations, U.S. companies can now reevaluate the amount of cryptocurrency held per quarter. According to The Block, as of December 2024, accounting rules in the United States allow companies to adjust the value of digital assets to market prices each quarter. Before the rules took effect last month, the company's cryptocurrency holdings decreased in the accounts if they depreciated during the reporting period, but cryptocurrency cannot be revalued upward before sale if the price increases. As a result, the value of cryptocurrency in the company's report may be lower than the market value. Thanks to the revaluation under the new rules, Tesla's cryptocurrency value increased to $1.076 trillion at the end of 2024, according to the company, while in some previous quarters, the value of savings was not revalued and remained at $184 million. How much Bitcoin does Tesla have in 2025 According to data from Arkham Intelligence, Elon Musk's company owns 11,509 BTC, which is valued at $1.2 billion at the current exchange rate. Bitcoin has increased by more than 50% in the last quarter of 2024 after Donald Trump's re-election as President of the United States, with this asset increasing by an additional 12.7% since the beginning of 2025.