Tesla made no changes to its bitcoin holdings during the fourth quarter of 2025, maintaining its position at 11,509 coins. This stability came amid a significant downturn in bitcoin's price, which fell from approximately $114,000 to $88,000 in the final months of the year. Consequently, the company had to record an after-tax impairment loss of about $239 million on its digital asset holdings, according to CoinDesk.

The tech giant's bitcoin value, which now stands around $1 billion at current prices, reflects a stark contrast to its earlier highs. Tesla's journey with bitcoin began in February 2021 when it disclosed ownership of 43,200 coins, valued at around $1.7 billion at that time. After testing the market's liquidity, Tesla sold a portion of its holdings but later offloaded about 75% of its stack near bitcoin's bear-market bottom in 2022. Since then, the company's holdings have remained relatively stable.

MORE FROM COINTIMES

Bitcoin Faces Liquidation Risks as Crypto Market Declines

Bitcoin's recent drop raises liquidation risks as the dollar strengthens and equities decline. The overall crypto market faces increased bearish sentiment and sell pressure.

In its fourth-quarter earnings report, Tesla also reported revenue of $24.9 billion, which fell short of estimates of $25.1 billion, although adjusted earnings per share of $0.50 exceeded the consensus forecast of $0.45. Following the report, TSLA shares increased by 3.4% in after-hours trading.

This latest loss highlights the volatility inherent in digital assets and raises questions about Tesla's strategy moving forward. While the stability in bitcoin holdings suggests a cautious approach, the significant financial impact from the impairment loss signals potential challenges ahead for the company's digital asset strategy. Investors will be watching closely to see how Tesla navigates these turbulent waters in the cryptocurrency market.