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Tesla Inc. reported an $80 million profit from its BTC holdings in the third quarter of 2025, benefiting from the cryptocurrency’s strong market performance. The company held 11,509 Bitcoin valued at around $1.31 billion as of September 30, up from $1.23 billion in the previous quarter.
This growth was solely due to the rise in Bitcoin's price, since Tesla did not change its cryptocurrency holdings during that period. It marks the automaker's second straight quarter of Bitcoin gains, as digital asset markets showed signs of recovery broadly.
Tesla has not made any new purchases of Bitcoin since the beginning of 2022, when it sold a small fraction to test its liquidity. Moreover, the company continues to refer to Bitcoin as a "liquid alternative to cash," while emphasizing its long-term commitment to digital assets as part of its treasury management strategy.
Tesla's third-quarter earnings were impacted by new Financial Accounting Standards Board (FASB) rules that require digital assets to be reported at fair market value on a quarterly basis. The rule change allowed Tesla to account for unrealized gains, which added $80 million of unrealized "other income."
The new accounting standard changed from the previous rules, allowing write-downs only if asset prices fell. The new fair-value approach more accurately reflects the performance of the markets, making Tesla's financial reporting consistent with the volatility of cryptocurrencies.
Furthermore, Tesla's Bitcoin valuation reached a four-year high. The company is the 11th largest corporate Bitcoin holder in the world, following MicroStrategy, Galaxy Digital, and Block. The increasing Bitcoin price reflects a rise in investor confidence in digital assets through 2025.
Also Read: Why is Tesla Betting Big on Bitcoin?
In the third quarter, Tesla reported total revenue of $25.18 billion, representing a 6% increase compared to the same period last year. The automotive revenue also stood at 21.2 billion, which was facilitated by stable sales in core markets, notably the company shipped 497,099 cars in the third quarter. Nevertheless, adjusted earnings per share stood at $0.50, compared to an expected 0.54 by analysts.
The net income decreased by 37% to $ 1.37 billion due to lower electric vehicle prices and higher operating costs. The company indicated that it has experienced an over 50% increase in research and development expenses attributed to rising investment in artificial intelligence and automation projects.
Tesla has a strong liquidity position, supported by its cash and equivalents balance of $41.6 billion at the end of the quarter. Despite Bitcoin representing a minor part of Tesla's overall assets, the $80 million gain offered a marginal improvement to the company's financial performance.
The Q3 report highlights Tesla's approach to balancing fundamental automotive expansion with long-term investments in technology and digital assets. The company maintains its Bitcoin position, indicating its confidence in cryptocurrency as a diversified corporate treasury strategy.
