Tesla’s long-running flirtation with Bitcoin took a mark-to-market hit in the fourth quarter, even as the electric-vehicle maker delivered stronger-than-expected earnings and doubled down on Elon Musk’s broader tech ambitions. Summary Tesla held steady on its Bitcoin position through the end of 2025, but booked a sizable unrealized loss as crypto prices slid late in the year. The EV maker reported $1.008 billion in digital assets as of Dec. 31—down 23% from the prior quarter—resulting in a $307 million paper loss after two consecutive quarters of unrealized gains. The decline mirrors Bitcoin’s own Q4 swoon; it fell roughly 23.7% over the period. Tesla Inc. disclosed Wednesday that it held steady on its Bitcoin position through the end of 2025, but booked a sizable unrealized loss as crypto prices slid late in the year. The company reported $1.008 billion in digital assets as of Dec. 31—down 23% from the prior quarter—resulting in a $307 million paper loss after two consecutive quarters of unrealized gains. The decline mirrors Bitcoin’s own fourth-quarter swoon. The world’s largest cryptocurrency fell roughly 23.7% over the period, a move that closely tracked the drop in the reported value of Tesla’s digital assets. While Tesla does not break out its crypto holdings, on-chain analytics firm Arkham Intelligence says the company’s stash consists entirely of Bitcoin—11,509 BTC that remained unchanged quarter over quarter. Tesla’s relationship with Bitcoin dates back to January 2021, when it made waves by purchasing $1.5 billion worth of the cryptocurrency. The automaker briefly accepted Bitcoin as payment for vehicles before suspending the option, citing environmental concerns tied to energy-intensive mining. Despite the crypto paper loss, Tesla’s core business showed resilience. The company posted better-than-expected fourth-quarter earnings and revenue, reassuring investors after a volatile year for both equities and digital assets. Tesla also revealed a $2 billion investment to acquire shares in Musk’s artificial intelligence startup, xAI, underscoring its expanding bets beyond cars and energy. Bitcoin was trading around $88,511 late Wednesday, while Tesla shares rose nearly 2% in after-hours trading, signaling Wall Street’s focus remains firmly on fundamentals—even as crypto volatility lingers in the background.
