Tesla's Shrinking Bitcoin Bet Still Worth $902 Million

Tesla's Bitcoin investment has been one of the longest-running corporate crypto bets on Wall Street, but it looks very different today than it did in 2021. The electric vehicle maker disclosed a $1.5 billion Bitcoin purchase in February 2021, becoming one of the first major public companies to add the cryptocurrency to its balance sheet.

The move was widely viewed as a vote of confidence in Bitcoin as both a treasury asset and an alternative store of value. Just weeks later, Bitcoin's rally pushed Tesla's position above $2.5 billion on paper. However, the company's strategy changed dramatically in 2022.

During the second quarter of 2022, Tesla sold approximately 75% of its Bitcoin holdings, citing the need to maximize cash amid COVID-related uncertainty in China rather than a change in its view of Bitcoin. The sale reduced Tesla's holdings to roughly 11,509 BTC, where they have remained ever since.

Tesla's remaining Bitcoin position is worth around $902 million at today's price of about $78,700, still below the company's original $1.5 billion investment despite Bitcoin's recovery from the depths of the 2022 crypto bear market.