Tesla’s Bitcoin Holdings Generate $600M Quarterly Gain Under New Accounting Standards

• Tesla’s Q4 2024 profit surged by $600M, driven by Bitcoin’s market value increase and new accounting rules.  
• Tesla’s Bitcoin holdings contributed significantly to its earnings, as BTC’s price reached $105,170.82 in Q4 2024.

Tesla has moved a $600 million profit in the fourth quarter of 2024, driven by the increase in the value of its Bitcoin holdings. The gain comes following adopting new accounting rules that allow public companies to adjust the value of their digital assets according to market prices in their quarterly reports.

As of Q4 2024, Tesla’s Bitcoin holdings were valued at approximately $1.19 billion, an increase from previous quarters. According to the Crypto News Flash report, the company had held its 9,720 BTC at a constant value of $184 million for several quarters.

However, with the introduction of the new Financial Accounting Standards Board (FASB) rules in January 2025, Tesla was able to register its holdings at the current market value, showing a rise to $1.08 billion at the close of the quarter.

The new rule, which aligns public company Bitcoin valuations with market prices, allowed Tesla to acquire about $347 million in gains. This was included in the company’s reported earnings of $600 million from its Bitcoin investments, boosting Tesla’s overall net income for the quarter to $2.3 billion.

Impact of the New FASB Rule

Before the accounting change, Tesla’s Bitcoin holdings were reported at their lowest value, $184 million, displaying the cost basis rather than the actual market value. This adjustment bolstered Tesla’s financial reports and revealed how the company benefited from its early investment in Bitcoin, valued at $1.5 billion in 2021, as part of its growth strategy.

However, Tesla remains one of the largest public corporate holders of Bitcoin despite selling off portions of its investment. The company’s Bitcoin holdings have been a key asset in its broader policy, adding revenue stream in a highly volatile market.

Tesla’s Bitcoin Transactions and Market Performance

Tesla’s Bitcoin-related earnings, which amounted to $589 million during Q4 2024, were further boosted by a surge in Bitcoin’s price. This price increase led to the company’s profitability, allowing Tesla to benefit from the rising value of its digital assets.

Additionally, in October 2024, Tesla moved its Bitcoin holdings into seven new wallets, a move seen as a rotation rather than a sale. The transfer, valued at approximately $760 million, was believed to be aimed at raising the security and management of the assets.

Despite these gains, Tesla reported revenue of $25.71 billion, which was lower than the expected $27.76 billion. However, Tesla’s stock still saw a positive reaction in the market, closing up over 4% after the release of its earnings report.

The price of Bitcoin continues to show strong momentum, currently trading at $104,904.87, with a recent 24-hour increase of 2.52%. Bitcoin’s market capitalization has surged to $2.08 trillion, and trading volume increased 24.59% during this period.