Tesla rides Bitcoin rally to $80 million profit in third quarter

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Tesla posted an $80 million profit on its Bitcoin holdings in the third quarter of 2025, which increased the value of the crypto asset but did not change the company’s cash from coin sales. According to reports, the company still held 11,509 BTC at the end of the quarter, worth about $1.35 billion.

tesla books crypto gain

Reports revealed that this gain appeared on Tesla’s income statement due to recent accounting guidance that requires companies to mark certain crypto assets at fair value.

This change means that fluctuations in Bitcoin’s market price will now show up in quarterly results even if no coins are sold. The accounting profession has been preparing for this change ever since the Financial Accounting Standards Board issued new guidance at the end of 2023.

Financial results announcement: Core performance is mixed

Tesla’s revenue for the third quarter was about $28 billion, beating many expectations, but adjusted earnings per share were $0.50, below the consensus of $0.54.

Analysts pointed to rising costs, including tariffs and lower regulatory credit revenues, as pressure on margins, even as vehicle deliveries remain strong.

Bitcoin Line Adds Small But Visible Boost

While the $80 million move is meaningful to crypto watchers, it is small compared to Tesla’s overall performance. For context, adjusted EBITDA for the quarter was reported at approximately $4.3 billion, meaning Bitcoin profits represent a small portion of Tesla’s results. This gain is accounted for as an unrealized gain and reflects changes in market value rather than proceeds from a sale.

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Market reaction and what it means for investors

Based on the report, investors treated Bitcoin news as a data point rather than a strategy. Some traders welcomed the transparency that comes with bringing cryptocurrencies to market. Other traders noted that the Bitcoin exposure adds another layer of volatility to Tesla’s earnings line, as it could lead to losses in future quarters if crypto prices fall.

Bitcoin trading at $111,002 on the 24-hour chart: TradingView

Why accounting shift is important

The new accounting rules eliminate an old asymmetry in which companies could write down write-downs of cryptocurrencies if their prices fell, but could not record profits if prices rose, unless they were sold.

Currently, gains and losses are reflected in net income each reporting period, which can result in volatile results from quarter to quarter. Larger companies with cryptocurrencies on their balance sheets will likely see these fluctuations more openly reported.

With its current holdings, Tesla is now the 11th largest corporate Bitcoin holder in the world. The automaker ranks higher than Hut 8 Mining and many smaller organizations, but lower than Strategy, Galaxy Digital, and Block.

Featured image from Brandon Bell/Getty Images, chart from TradingView

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