In its first quarter earnings report for 2026, Tesla announced that its bitcoin holdings remained stable at 11,509 BTC, valued at approximately $880 million given the current bitcoin price of around $78,390.86. Despite this unchanged position, the company recorded an after-tax impairment loss of $173 million on its digital assets.
The value of Tesla’s bitcoin holdings has fluctuated significantly, dropping from about $90,000 at the beginning of the year to around $68,000 by the end of March. This decline contributed to the impairment loss reported by the electric vehicle manufacturer.
While Tesla’s earnings exceeded expectations, the company fell short on revenue projections. It reported a revenue of $22.39 billion, which was slightly below the analyst forecast of $22.71 billion. However, earnings per share came in at $0.41, surpassing the anticipated $0.37.
Following the earnings announcement, Tesla’s stock experienced a 4% increase in after-hours trading.
Since entering the cryptocurrency market in February 2021, Tesla has had a dynamic relationship with bitcoin. Initially, the company purchased 43,200 BTC for approximately $1.5 billion. Shortly thereafter, it sold about 4,320 BTC to assess market liquidity. By July 2022, amid a downturn in the market, Tesla reduced its holdings to 9,720 BTC. A modest increase in January 2025 brought its total back to 11,509 BTC, where it has remained.
Currently, bitcoin is experiencing a short squeeze, supported by steady demand in the U.S., which is contributing to its recent price movements.
- Bitcoin has risen following the STRC ex-dividend date, breaking a six-month trend of post-payout weakness.
- The recent price increase is attributed to negative funding rates, which have prompted short covering, along with a persistent Coinbase premium indicating ongoing spot demand.
Tesla's first quarter report reveals unchanged bitcoin holdings at 11,509 BTC, alongside a $173 million impairment loss. Despite missing revenue targets, the company reported better-than-expected earnings, leading to a rise in stock price.