Tesla saw a significant boost to its fourth-quarter earnings, reporting a $600 million gain from its Bitcoin holdings, thanks to updated accounting standards that now allow companies to reflect the market value of digital assets in their financial statements.
In its Q4 2024 earnings report released on Jan. 29, Tesla revealed that its Bitcoin stash is now valued at just over $1 billion—up sharply from the $184 million it had previously recorded in prior quarters. This represents a net gain of approximately $589 million on its holdings, which currently stand at 9,720 BTC, according to Bitcoin Treasuries.
This change stems from a rule introduced by the Financial Accounting Standards Board (FASB) in 2023, which took effect in mid-December. The update allows corporations to report their cryptocurrency assets at fair market value. Previously, companies were required to record impairment losses if the asset’s value declined but could not reflect any increases unless they sold the holdings. This often led to an understated valuation of digital assets on financial statements.
Tesla’s overall GAAP income for Q4 2024 came in at $2.3 billion, with the Bitcoin gains contributing significantly to the total.
Despite the boost from its crypto holdings, Tesla’s revenue and earnings for the quarter fell short of analyst expectations. The company reported total revenue of $25.71 billion, a modest 2% year-over-year increase, but below the projected $27.22 billion. Earnings per share also missed estimates, coming in at $0.73 compared to the expected $0.76.
Operating expenses for the quarter reached $2.59 billion, reflecting a more than 9% increase from Q3.
Tesla’s stock (TSLA) closed down 2.26% on Jan. 29 but rebounded in after-hours trading, climbing 4.44% to reach $406.36, according to Google Finance. Over the past year, Tesla’s stock has surged 103.79%, peaking at an all-time high of $479 on Dec. 17.
The electric vehicle giant first entered the cryptocurrency market in February 2021, eventually amassing 42,902 BTC. However, in July 2022, Tesla sold off 75% of its holdings, offloading over 30,000 Bitcoin for approximately $936 million.
Tesla is not alone in adopting Bitcoin as a treasury asset. Companies such as Semler Scientific, Genius Group, and Rumble have also invested in Bitcoin, following the strategy popularized by MicroStrategy.
MicroStrategy remains the largest public holder of Bitcoin, with 471,000 BTC valued at around $48 billion, according to Saylor Tracker.
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