The company’s initial foray into Bitcoin occurred in early 2021, when it invested $1.5 billion in the cryptocurrency. Subsequently, Tesla began accepting Bitcoin as payment for its vehicles. However, this payment option was suspended in May 2021 due to environmental concerns related to Bitcoin mining’s energy consumption. The suspension led to a notable decline in both Bitcoin’s value and Tesla’s stock price.
In the second quarter of 2022, Tesla sold approximately 75% of its Bitcoin holdings, amounting to $936 million. CEO Elon Musk stated that the sale was driven by the company’s need for liquidity rather than a lack of confidence in Bitcoin. Since then, Tesla has incrementally increased its Bitcoin holdings, now totaling around 11,900 BTC.
The recent surge in Bitcoin’s value has contributed to the increased valuation of Tesla’s holdings. As of May 24, 2025, Bitcoin is trading at approximately $109,058. This price point has bolstered the value of Tesla’s Bitcoin assets, aligning with the company’s strategic investment approach.
Tesla’s position in Bitcoin places it among the top corporate holders of the cryptocurrency. Other notable companies with significant Bitcoin investments include MicroStrategy and Galaxy Digital Holdings. These firms have adopted similar strategies, integrating Bitcoin into their corporate treasuries.
The broader corporate adoption of Bitcoin has been influenced by recent regulatory developments. In March 2025, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve. This initiative aims to maintain government-owned Bitcoin as a national reserve asset. The move has sparked interest among various states and corporations, further legitimizing Bitcoin’s role in the financial ecosystem.
Arabian Post – Crypto News Network
