Elon Musk’s Tesla Clocks Surprising $600 Million Bitcoin Gain In Q4 Thanks To New Accounting Rule

Elon Musk’s electric car manufacturer, Tesla, reported a $600 million net paper gain on its Bitcoin holdings in the fourth quarter of 2024 after taking advantage of a new accounting rule that allows companies to value digital assets at current market prices each quarter.

Tesla’s Net Income Boosted By $600 Million Bitcoin Gains

Tesla’s fourth-quarter earnings report released on Jan. 29 revealed that the company valued its Bitcoin cache at $1.076 billion as of the end of 2024, up from the $184 million it logged for several previous quarters. The EV maker marked a net gain of $589 million on its BTC holdings over the quarter, which stands at 11,509 BTC, according to Arkham Intelligence data.

Under a new rule from the Financial Accounting Standards Board (FASB) that took effect in December, corporate holders of crypto can now use the estimated market value of the digital assets in their balance sheets. The FASB specifies accounting and reporting standards for the US Generally Accepted Principles (GAAP). 

Prior to this new rule, a firm’s crypto stash value decreased on the books if it lost value during the accounting period. With the older accounting rules, the recorded value could not increase until the assets were sold, even if the value of the holdings rose.

Moreover, Tesla posted a GAAP income boost of $600 million on its BTC holdings. Overall, the company reported a GAAP income of $2.3 billion in the fourth quarter.

Tesla Is The Sixth-Largest Public Holder Of Bitcoin

Tesla first purchased Bitcoin in February 2021 and accumulated a stockpile of 42,902 BTC until it sold 75% of its holdings in July 2022, liquidating $936 million worth of the crypto. As of press time, the Bitcoin tracking website BitcoinTreasuries ranks Tesla as the sixth-largest holder of the foremost crypto among publicly traded companies.

Other publicly listed companies, including medical technology firm Semler Scientific and YouTube rival Rumble, have also scooped up Bitcoin — a bold treasury strategy popularized by Michael Saylor’s software intelligence firm MicroStrategy. MicroStrategy currently has a 471,107 BTC stack after the latest buy, more than any other public company.