Tesla recorded a $112 million pretax paper loss on its digital asset holdings during the second quarter, reducing the value of those assets to $674 million. The markdown lowered the company's GAAP earnings by $87 million on an after-tax basis, reflecting the impact of falling crypto prices on Tesla's balance sheet. Notably, Tesla added the full pretax loss back when calculating adjusted EBITDA, a metric that excludes certain non-cash and one-time items. The disclosure highlights how public companies holding cryptocurrency remain exposed to market volatility, which can swing reported earnings from quarter to quarter. Under fair-value accounting rules now applied to crypto, firms must mark holdings to current prices, meaning both gains and losses flow through financial statements even when no assets are sold.
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