Elon Musk’s Companies Treat Bitcoin Like Digital Gold, Even as It Bites into Profits

Core Insights - Tesla and SpaceX maintained their Bitcoin holdings during a significant price decline, treating Bitcoin as a long-term treasury asset rather than engaging in buying or selling activities [1][2][7] Financial Performance - Tesla reported a $239 million after-tax mark-to-market impairment on its 11,509 BTC holdings as Bitcoin's price fell from approximately $114,000 to $88,000–$89,000 [2][3] - Despite this impairment, Tesla's overall financial performance was bolstered by record energy margins and earnings per share (EPS) beats, framing the Bitcoin impairment as a minor headwind [3][4] Strategic Positioning - Tesla's Bitcoin holdings, while small relative to its $44 billion cash reserves, symbolize a strategic belief in Bitcoin's long-term value and scarcity [4][8] - SpaceX mirrors Tesla's strategy, holding an estimated 8,200–8,285 BTC without significant sales in over three years, indicating a focus on long-term value rather than short-term trading [5][6] Market Context - The approach of Tesla and SpaceX contrasts sharply with other corporations in 2025, many of which reduced or exited their crypto positions amid market volatility [7] - The impairment recorded by Tesla is characterized as non-cash GAAP accounting noise, suggesting potential for profit recovery if Bitcoin prices rebound [7][8] Ideological Perspective - Both companies are positioning Bitcoin as a form of digital gold for corporate treasuries, aligning with a broader thesis of forward-thinking financial strategies rather than speculative trading [8]