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Tesla’s Bitcoin profit reached $80 million in the third quarter of the year, driven by rising Bitcoin prices. The company kept its 11,509 BTC, worth about $1.35 billion at the end of September.
Interestingly, unlike earlier quarters, Tesla didn’t buy or sell any Bitcoin.
Why Tesla’s Bitcoin Holdings Matter
The $80 million Tesla Bitcoin profit might not be huge compared to its total revenue, but it marks a new level of transparency.
Tesla’s Q3 filing shows that under new Financial Accounting Standards Board (FASB) rules, companies must report the current market value of their crypto holdings every quarter.
Before this change, firms could only record losses when prices fell and had to wait until they sold assets to show gains. Now, unrealised profits and losses appear each quarter and give investors a more accurate view of how crypto affects performance.
Tesla’s holdings gained value as Bitcoin prices rebounded from earlier lows this year. The cryptocurrency’s price surge came amid rising institutional interest, positive regulatory signals in the US, and a general recovery across the crypto market.
Tesla’s Financial Performance in Q3
Tesla reported $28.1 billion in revenue for the third quarter, beating Wall Street estimates of $26.36 billion. However, its adjusted earnings per share came in at $0.50, which is slightly below the expected $0.54.
The Tesla Bitcoin profit did not factor into adjusted EPS.
The company’s adjusted EBITDA reached $4.3 billion while cash and equivalents stood at $41.6 billion by the end of September. These numbers show that Tesla remains financially strong, even with mixed earnings results.
Shares of Tesla traded around $434 after the report. The stock saw a mild dip in after-hours trading, as the earnings miss offset the boost from Bitcoin-related gains.
How the FASB Rule Change Affects Tesla Bitcoin Profit
The new FASB accounting rule is important to Tesla’s Q3 Bitcoin profit. Under the previous system, companies valued crypto assets at the lowest market price during a reporting period.
That approach often undervalued holdings and didn’t capture any gains unless they sold their coins. The updated rule now allows Tesla and others to report fair value gains and losses every quarter.
This makes it easier to see how Bitcoin affects corporate earnings. For Tesla, it meant recognising an $80 million increase in value without needing to sell any Bitcoin.
This change also improves visibility for investors. Tesla’s balance sheet now shows the true worth of its Bitcoin holdings, not just historical costs.
Tesla’s Long-Term Bitcoin Strategy
Tesla has been consistent with its Bitcoin strategy since its initial purchase in early 2021. The company originally invested $1.5 billion and briefly accepted Bitcoin as payment for its vehicles. CEO Elon Musk later paused payments due to environmental concerns over Bitcoin mining. Still, Tesla held onto most of its BTC through market highs and lows.
The company’s current 11,509 BTC have been unchanged since 2022. While Tesla sold a portion of its holdings that year, it has kept the rest as a strategic reserve. This position shows that Tesla views Bitcoin as a long-term asset rather than a short-term trade.
Analysts see Tesla’s Bitcoin approach as a sign of confidence. The company treats the cryptocurrency as part of its treasury management strategy, which is similar to how firms might hold foreign currency or gold.
Bitcoin’s Market Rise and Corporate Influence
Bitcoin’s rise this year has benefited several large companies, not just Tesla.
MicroStrategy, for example, reported over $2 billion in unrealised gains this quarter thanks to Bitcoin’s rally. Together, these firms have become examples of how corporations can use digital assets to diversify balance sheets.
MicroStrategy records billions in unrealised profit | source: SaylorTracker
Tesla’s Bitcoin profit also shows the ongoing acceptance of crypto within mainstream finance.
As accounting and regulatory frameworks improve, more companies may feel comfortable holding Bitcoin. This could gradually turn digital assets into a standard part of corporate treasuries.
