Tesla and Block Maintain Profitability on Bitcoin Holdings Amid Market Declines

Tesla and Block have successfully maintained profitability on their Bitcoin treasuries, contrasting sharply with many other corporate holders facing unrealized losses. Tesla currently holds 11,509 BTC, with a total cost basis estimated between $386 million and $387 million. Block, on the other hand, possesses approximately 9,117 BTC, accumulated at a cost of around $220 million. Both companies have benefited from low acquisition costs during their purchases in 2020 and 2021, allowing them to remain in the green despite current market conditions.

Tesla's approach to Bitcoin has involved significant strategic decisions. Initially, the company invested about $1.5 billion in Bitcoin in early 2021 but later sold approximately 75% of that position in Q2 2022. This sale resulted in a leaner holding with a lower average cost, leading to an $80 million gain reported in Q3 2025 under fair-value accounting rules. In contrast, Block has taken a more gradual approach, consistently adding to its Bitcoin holdings without dramatically increasing its average acquisition cost.

Both companies rank among the top 15 public entities by Bitcoin holdings, yet their experiences highlight the challenges faced by peers who entered the market at higher prices. The Financial Accounting Standards Board's fair-value accounting mandates that unrealized losses appear directly on income statements, affecting how companies report their cryptocurrency assets. Tesla's recent gains reflect a more favorable accounting treatment, while Block's steady accumulation strategy has positioned it advantageously in the current market landscape.

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Source: KLEA News