Profitable Bitcoin Holdings Set Tesla and Block Apart from Peers
Tesla and Block remain profitable on their Bitcoin treasuries while many other corporate holders face unrealized losses. The two companies have accumulated significant amounts of Bitcoin, with Tesla holding 11,509 BTC at a total cost basis of around $386 million to $387 million. This position is still profitable in the current market.
Tesla's journey into Bitcoin began in early 2021 when it deployed about $1.5 billion into the cryptocurrency. However, in Q2 2022, Tesla sold roughly 75% of that position, leaving the company with a leaner, lower-average-cost remainder. This restructuring has contributed to an $80 million gain from its Bitcoin holdings in Q3 2022 under fair-value accounting rules.
Block's path into Bitcoin was steadier. The payments company began buying Bitcoin in 2020 and continued through 2021, gradually accumulating its position. Block has also made small dollar-cost averaging additions since then, keeping its holdings growing incrementally without dramatically shifting its average cost upward. Its cost basis of around $220 million for more than 9,100 BTC represents an average acquisition price that most companies entering the Bitcoin treasury space today simply cannot replicate.