From Nasdaq: 2025-05-09 05:50:00

Tesla (NASDAQ: TSLA) is facing challenges with its stock down nearly 30% this year and disappointing first-quarter results. Its revenue and earnings per share fell below analyst expectations, with automotive revenue dropping 20% year on year. However, Tesla’s crypto holdings are worth around $1.1 billion, with 11,509 Bitcoins held since 2022.

New accounting rules require public companies like Tesla to report the fair value of their crypto holdings, reflecting market fluctuations. Tesla’s balance sheet value of crypto surged to over $1 billion in Q4 2024, contributing $600 million to its net income for the quarter. The shift in reporting rules benefits cryptocurrency adoption and corporate finances.

Despite Tesla’s tumultuous relationship with Bitcoin, it remains one of the top corporate holders of cryptocurrency. Tesla purchased its first Bitcoin in early 2021 but later halted plans for Bitcoin payments due to environmental concerns. While Tesla sold 75% of its crypto in Q2 2022, it still holds a significant stake, owning about 0.06% of all Bitcoins to be produced.

Companies are increasingly diversifying their investments and hedging against global uncertainties by purchasing Bitcoin. In Q1 2025, 12 new public companies bought Bitcoin, bringing the total to 79 companies holding 688,000 Bitcoins. The adoption of cryptocurrency by public companies is fueled by the potential for growth and the need to hedge against inflation and market fluctuations.



Read more at Nasdaq: A Surprising Takeaway From Tesla’s Disappointing Earnings Report and What It Means for Bitcoin