Tesla’s Bitcoin Holdings Stay Flat in Q4 2025 as Crypto Slump Triggers $239M Impairment Loss

Tesla (TSLA) maintained its bitcoin holdings unchanged during the fourth quarter of 2025, keeping a total of 11,509 BTC on its balance sheet. While the number of coins remained steady, the value of Tesla’s bitcoin investment dropped sharply as the cryptocurrency market weakened toward the end of the year. Bitcoin’s price fell from around $114,000 at the start of the quarter to approximately $88,000 by year-end, significantly reducing the market value of Tesla’s digital asset holdings.

As a result of the bitcoin price decline, Tesla recorded an after-tax impairment loss of roughly $239 million related to its digital assets. The loss was disclosed in the company’s recently released fourth-quarter earnings report and reflects accounting rules that require companies to mark down the value of crypto holdings when prices fall, even if those assets are not sold. This impairment had no impact on Tesla’s bitcoin balance, but it did weigh on reported earnings for the quarter.

Tesla’s relationship with bitcoin dates back to early 2021, when the Elon Musk-led company revealed it had purchased 43,200 BTC for about $1.7 billion. At the time, the move was seen as a major endorsement of bitcoin by a large publicly traded company. Shortly after the initial purchase, Tesla sold a small portion of its holdings to test market liquidity. However, in 2022, amid a broader crypto bear market, Tesla sold approximately 75% of its bitcoin near market lows, significantly reducing its exposure.

Since that large sale, Tesla’s bitcoin holdings have remained relatively stable, with no major buying or selling activity reported. Despite the impairment charge, Tesla’s core business performance showed mixed results in the fourth quarter. The company reported revenue of $24.9 billion, slightly below market expectations of $25.1 billion. However, adjusted earnings per share came in at $0.50, beating the consensus estimate of $0.45.

Investors appeared to focus on the earnings beat, sending TSLA shares up 3.4% in after-hours trading. Tesla’s experience highlights both the potential and the volatility of holding bitcoin on corporate balance sheets, especially during periods of sharp price swings in the cryptocurrency market.