Tesla recorded a $112 million unrealized loss on its digital‑asset holdings in the second quarter of 2026, reducing GAAP earnings by $87 million after tax. The decline reflects the broader fall in cryptocurrency values since March 31, 2026, when the carrying value of Tesla’s crypto assets was $786 million. FASB standards require periodic fair‑value revaluation of crypto holdings, with changes recognized in net income. Tesla’s March 31 filing showed that Bitcoin made up most of its digital assets, comprising 11,509 BTC purchased for $386 million. The June 30 shareholder update indicated the asset balance had fallen to $674 million. The $674 million balance represented about 0.45% of Tesla’s total assets of $148.5 billion at quarter‑end. The loss did not affect cash flow or operational activities. Adjusted EBITDA of $3.273 billion for the quarter excluded the loss, which was added back in the reconciliation. Future earnings may continue to fluctuate with crypto price movements unless Tesla changes its accounting treatment or discloses further asset movements.