Electric vehicle behemoth Tesla Inc. TSLA reported Wednesday unrealized gains of over $280 million on its cryptocurrency holdings in the second quarter, thanks to a 30% jump in Bitcoin’s BTC/USD price.
What Happened: Tesla’s balance sheet showed $1.235 billion in digital assets, up nearly 30% from the last quarter, according to the company’s earnings report released after the closing bell.
This resulted in gains of $284 million on its cryptocurrency investments, a marked turnaround from the $125 million losses it suffered in the previous quarter.
The Elon Musk-led tech titan does not publish a breakdown of its cryptocurrency holdings. However, on-chain analytics firm Arkham Intelligence reports that the entirety of their stockpile is made up of Bitcoin, worth almost $1.370 billion at the time of writing. Its hoard of 11,509 BTC remained unchanged from the last quarter.
Bitcoin closed the second quarter up approximately 30%, reversing the declines from the first quarter.
See Also: Why Crypto Investors Are Receiving Internal Revenue Service Warning Letters
Why It Matters: Tesla’s Bitcoin journey began in January 2021, when it first acquired $1.5 billion worth of the leading cryptocurrency.
The firm previously accepted Bitcoin as a payment option for vehicles before ending the practice due to concerns about the energy consumption used in Bitcoin mining.
Earlier this week, on-chain sleuths detected a $150 million Bitcoin transfer from a wallet tied to Musk’s space technology company SpaceX after more than three years.
Meanwhile, the company reported a revenue and earnings drop in the second quarter, both of which missed analysts’ expectations.
Price Action: At the time of writing, Bitcoin was exchanging hands at $119,062, down 0.41% in the last 24 hours, according to data from Benzinga Pro.
Shares of Tesla dipped 4.41%in after-hours trading after closing up 0.14% at $332.56 during Wednesday’s regular trading session.
TSLA recorded a high Growth score as of this writing. Want to see how it compares to other “Mag 7” stocks? Go to Benzinga Edge Stock Rankings.
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