However, Tesla's digital assets were yet another noteworthy detail in the company's investor presentation.
The current value of the company's digital asset portfolio is $1.24 billion. Even though this is a huge increase over the $722 million earned during the same period last year, Tesla is actually losing out on billions of dollars in potential earnings because of Bitcoin's 80% increase in value over the same period last year.
At the start of 2021, the electric vehicle company invested $1.5 billion in Bitcoin, demonstrating its faith in the cryptocurrency's long-term prospects. The cryptocurrency market was significantly impacted at the time by CEO Elon Musk's social media outrage in favor of Bitcoin. However, Tesla liquidated 75% of its Bitcoin holdings in the middle of 2022.
Bitcoin was selling far below its current price at the time. Bitcoin is now close to $119,000 in value. If Tesla had owned Bitcoin at the time, the investment would have grown to about $5 billion in value today. In 2022, the corporation sold $936 million worth of Bitcoin, which is now worth over $3.5 billions.
During the quarter in which it sold cryptocurrency, Tesla declared its intention to fortify its cash position in the face of severe market turbulence. In 2022, the company's market valuation dropped by two-thirds, while Bitcoin saw a 60% decline.
But the state of the market has changed. Over the last two years, Bitcoin has experienced a swift comeback. One of the things driving this increase has been US President Donald Trump's proposal to relax rules and create a strategic Bitcoin reserve.
Tesla announced a $284 million profit in the second quarter of 2025, driven by Bitcoin. This profit, though, only makes up a tiny portion of the possible return. While car sales revenue fell for the second consecutive quarter, the company's net income for the period was $1.17 billion.
In recent years, Musk has moderated his posts about cryptocurrencies on social media. He declared, "I'm still holding my Bitcoin, Ethereum, and Dogecoin, and I won't be selling them," in March 2022, just before Tesla's Bitcoin sale.
