Tesla’s long-running connection with Bitcoin took a hit in the fourth quarter, even as the company delivered solid earnings and leaned further into Elon Musk’s bigger tech vision.
In its latest filing, Tesla said it did not change its Bitcoin holdings through the end of 2025. Still, falling crypto prices late in the year forced the company to record a large unrealized loss.
As of December 31, Tesla reported $1.008 billion in digital assets, down 23% from the previous quarter. That drop translated into a $307 million paper loss, following two straight quarters of unrealized gains.
The decline closely matched Bitcoin’s own performance. During the fourth quarter, Bitcoin fell about 23.7%, nearly the same percentage drop seen in Tesla’s reported crypto value. While Tesla doesn’t publicly detail its crypto holdings, blockchain analytics firm Arkham Intelligence says the company holds 11,509 Bitcoin, a figure that didn’t change during the quarter.
Tesla and Bitcoin: a long history
Tesla first made headlines in January 2021 when it bought $1.5 billion worth of Bitcoin, becoming one of the first major public companies to do so. The company briefly allowed customers to buy cars with Bitcoin before pulling back, citing environmental concerns related to energy-intensive mining.
Strong earnings, bigger ambitions
Despite the crypto loss on paper, Tesla’s main business held up well. The company reported better-than-expected fourth-quarter earnings and revenue, helping calm investors after a turbulent year for both stocks and digital assets.
Tesla also revealed a $2 billion investment in shares of Elon Musk’s artificial intelligence company, xAI, showing the automaker is continuing to expand beyond cars and energy into AI and advanced technology.
Market reaction
Late Wednesday, Bitcoin was trading around $88,511, while Tesla shares climbed nearly 2% in after-hours trading. The reaction suggests investors are still focused on Tesla’s core performance — even as crypto volatility continues in the background.
For now, Tesla’s Bitcoin bet remains unchanged, but its value will keep rising and falling with the market, just like the asset itself.
