Electric vehicle juggernaut Tesla Inc. TSLA reported losses on cryptocurrency investments in the first quarter

input: Electric vehicle juggernaut Tesla Inc. TSLA reported losses on cryptocurrency investments in the first quarter

Electric vehicle juggernaut Tesla Inc (NASDAQ:TSLA) reported losses on cryptocurrency investments in the first quarter, while its Bitcoin (BTC) stash remained largely unchanged.

What Happened: Tesla's balance sheet showed $951 million in digital assets, a 11.6% decrease from the last quarter, according to the company's earnings report released on Tuesday.

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 typically disclose 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, valued at nearly $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 with a decline of roughly 12%, resulting in unrealized losses for Tesla. However, with the apex cryptocurrency experiencing a 13% gain in April, its current value, as indicated by Arkham, showed an increase.

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

The Elon Musk-led company saw a decrease in both revenue and earnings for the first quarter, both of which missed analysts' expectations.

Price Action: At the time of writing, Bitcoin was trading at $93,315.25, showing a rise of 5.62% in the last 24 hours, according to Benzinga Pro.

Shares of Tesla experienced a surge of 5.39% in after-hours trading, following a gain of 4.60% to reach 237.97 during Tuesday's regular trading session.

The TSLA stock ranked highly in terms of the quality score—a measure of the company's operational efficiency and financial health—at the time of writing. To compare it to Strategy Inc (NASDAQ:MSTR), the largest Bitcoin corporate holder, check out Benzinga Edge Stock Rankings.