Tesla holds bitcoin treasury steady, reports $112M impairment loss

Tesla maintained its bitcoin holdings steady in the second quarter of 2026, keeping its position at 11,509 BTC without any purchases or sales since 2022. Despite the company’s decision not to alter its bitcoin treasury, it reported an after-tax impairment loss of $112 million related to its digital asset holdings. This loss reflects the mandatory accounting treatment that requires companies to recognize declines in the value of digital assets through earnings.

During the quarter, bitcoin’s price dropped by 14%, falling from approximately $83,000 at the beginning of April to roughly $58,000 by the end of June. However, bitcoin later rebounded somewhat to about $65,840. Tesla's impairment loss corresponds to the lower bitcoin prices during the reporting period rather than its current trading level. Tesla remains one of the largest publicly traded firms holding bitcoin, though its holdings are smaller compared to companies like MicroStrategy, which has continued to aggressively accumulate cryptocurrency.

In addition to its cryptocurrency update, Tesla released mixed second-quarter financial results. The company posted revenue of $28.2 billion, beating analyst estimates of $27.6 billion. However, its non-GAAP earnings per share (EPS) came in at $0.33, missing expectations of $0.55. Gross margin was reported at 16.8%, with GAAP net income reaching $1.11 billion. Tesla also reported a negative free cash flow of $1.1 billion for the quarter.

Tesla originally purchased about $1.5 billion worth of bitcoin in early 2021 and had briefly accepted bitcoin as payment for vehicles before suspending that option due to environmental concerns. The company sold approximately 75% of its bitcoin holdings in 2022 but has held its current position unchanged since then. The continued impairment loss highlights the impact of cryptocurrency price volatility on corporate balance sheets under current accounting standards.