Fri Jul 25 03:50:00 UTC 2025: Here’s a news article summarizing the CNBC report on Tesla’s Bitcoin holdings:

**Tesla’s Bitcoin Sale Haunts as Crypto Surges, Adding to Earnings Woes**

**[City, State] –** Tesla’s recent earnings miss was compounded by a missed opportunity in the cryptocurrency market. While the electric vehicle giant reported digital asset holdings valued at $1.24 billion, a past decision to sell a significant portion of its Bitcoin has cost the company billions in potential gains.

Tesla initially invested $1.5 billion in Bitcoin in early 2021, a move that temporarily boosted the cryptocurrency’s price. However, in mid-2022, as markets plunged, Tesla sold 75% of its Bitcoin holdings to bolster its balance sheet. At the time, this was seen as a prudent move to secure cash during a period of economic uncertainty.

Now, with Bitcoin trading near record highs – up 80% in the last year and reportedly at over $119,000 – the sale looks like a misstep. Had Tesla held onto its initial Bitcoin investment, it would be worth approximately $5 billion today, far surpassing the current value of its digital assets. The $936 million worth of bitcoin the company converted to cash would currently be valued at over $3.5 billion.

This lost potential comes at a difficult time for Tesla. The company reported a second consecutive drop in auto revenue, falling short of Wall Street expectations and causing an 8% stock plunge. While CEO Elon Musk focuses on ambitious projects like robotaxis and humanoid robots, the company faces challenges including expiring EV tax credits and the potential impact of Trump’s tariffs.

Gains from bitcoin in the second quarter amounted to $284 million in a period when total net income was $1.17 billion.

The missed Bitcoin gains add another layer of complexity to Tesla’s current financial picture, highlighting the risks and rewards of venturing into the volatile cryptocurrency market. Tesla did not respond to a request for comment.

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