Elon Musk-Led Tesla Reports $125 Million In Unrealized Losses On Bitcoin After Top Crypto Drops 12% In Q1

Electric vehicle juggernaut Tesla Inc. TSLA reported losses on cryptocurrency investments in the first quarter on Tuesday, while its Bitcoin BTC/USD stash remained unchanged.

What happened: Tesla's balance sheet showed $951 million in digital assets, down 11.6% from the last quarter, according to the company's earnings report released after the market close.

The firm also reported a mark-to-market loss of $125 million on its cryptocurrency investments, compared to $347 million in gains in the fourth quarter of 2024.

Tesla does not publish a breakdown of its cryptocurrency holdings. However, on-chain analytics firm Arkham Intelligence suggests that the entirety of their stockpile is made up of Bitcoin, worth almost $1.076 billion at the time of writing. Its hoard of 11,509 BTC remained unchanged from the last quarter.

Bitcoin closed the first quarter down roughly 12%, resulting in unrealized losses for Tesla. However, with the apex cryptocurrency regaining 13% in April, its current value, as indicated by Arkham, was higher.

Why It Matters: With the adoption of the new accounting standard for cryptocurrencies, businesses can declare their holdings at market value and include them in net income.

Tesla's Bitcoin journey began in January 2021, when it first acquired $1.5 billion worth of the leading cryptocurrency.

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Meanwhile, the Elon Musk-led company revealed a revenue and earnings fall in the first quarter, both of which missed analysts’ expectations.

Price Action: At the time of writing, Bitcoin was exchanging hands at $93,315.25, up 5.62% in the last 24 hours, according to data from Benzinga Pro.

Shares of Tesla surged 5.39% in after-hours trading after closing up 4.60% at 237.97 during Tuesday's regular trading session.

The TSLA stock ranked high on the quality score—a measure of the company’s operational efficiency and financial health—as of this writing. To see how it compares to Strategy Inc. MSTR, the largest Bitcoin corporate holder, check out Benzinga Edge Stock Rankings.