Tesla said its digital assets were worth $1.008 billion as of Dec. 31, 2025, down 23% from the previous quarter. The decline led to a $307 million unrealized loss, ending a stretch of two consecutive quarters with unrealized gains. The company did not reduce its crypto position during the period.
Bitcoin’s fourth-quarter drop hit Tesla’s valuation
The move tracked Bitcoin’s own weakness in the fourth quarter. The cryptocurrency fell about 23.7% over the period, closely matching the drop in the value Tesla reported for its digital assets. Tesla did not provide a breakdown of its crypto holdings, but on-chain analytics firm Arkham Intelligence said the company’s treasury consists entirely of Bitcoin, totaling 11,509 BTC. That figure was unchanged from the prior quarter.
Tesla’s Bitcoin position dates back to 2021
Tesla’s exposure to Bitcoin began in January 2021, when it bought $1.5 billion worth of the asset. The automaker later briefly accepted Bitcoin for vehicle purchases before halting the option, citing environmental concerns related to energy-intensive mining. Even with the latest mark-to-market setback, Tesla kept its Bitcoin holdings intact through the end of 2025.
Core operations outperformed expectations
The crypto-related paper loss came alongside stronger fourth-quarter results in Tesla’s main business. The company posted better-than-expected earnings and revenue, offering investors a steadier picture after a volatile year across both equities and digital assets. Tesla also disclosed a $2 billion investment to acquire shares in Elon Musk’s artificial intelligence startup xAI, showing that its capital allocation is stretching beyond vehicles and energy.
Bitcoin was trading near $88,511 late Wednesday, while Tesla shares rose nearly 2% in after-hours trading. The market reaction suggested investors were focused more on operating performance than on the quarter’s crypto valuation swing.