Tesla has reported an $80 million profit from its Bitcoin holdings in the third quarter of 2025, as noted in its quarterly earnings report released on October 22. The electric vehicle manufacturer maintained its crypto reserves without selling or increasing its Bitcoin stash, which remains at 11,509 Bitcoin, now valued at approximately $1.31 billion, up from $1.23 billion in the previous quarter. This increase is attributed solely to Bitcoin’s price appreciation, reflecting a resurgence in the cryptocurrency market this year.
A key factor contributing to the spike in Tesla’s Bitcoin valuation is the adoption of revised fair-value accounting rules, which require the company to report its digital asset holdings at current market prices instead of historical cost. This method of accounting enabled Tesla to capture the $80 million gain as “other income,” marking the most substantial quarterly Bitcoin revaluation for the company since 2021.
Tesla’s Bitcoin holdings position it as the 11th largest corporate Bitcoin owner globally, trailing behind notable entities such as MicroStrategy, Galaxy Digital, and Block, yet leading institutions like Hut 8 Mining. This recent report indicates that 2025 is shaping up to be a favorable year for Tesla’s cryptocurrency investments, with this being the second consecutive quarter of gains.
Despite this positive performance in its crypto holdings, Tesla’s overall financials showed signs of strain. The company reported total revenue of $25.18 billion, representing an increase from the same period last year. However, automotive revenue saw only a modest increase of 6% to $21.2 billion, while net income fell by 37% to $1.37 billion, a decline from $2.17 billion in the previous year. Tesla attributed this downturn in profitability to a reduction in electric vehicle prices and a steep increase in operating costs, which surged by over 50%. This spike in costs is partly related to investments in artificial intelligence and other research and development projects.
The company has long maintained a positive outlook on Bitcoin, previously describing it as “a liquid alternative to cash.” Tesla has not made any new Bitcoin purchases since early 2022, when it sold a portion of its holdings to test liquidity before refocusing on Bitcoin as a strategic treasury asset.
In related news, a Bitcoin wallet associated with SpaceX, another company led by Elon Musk, transferred around $268 million worth of Bitcoin to two addresses recently, according to data from Arkham Intelligence. On-chain analyst Ai Yi noted that the transactions came after a three-month pause and are likely part of internal fund management rather than an asset liquidation.
