Elon Musk's Tesla reported a $600 million gain from its Bitcoin (BTC) holdings in Q4 of 2024 following a new accounting rule from the Financial Accounting Standards Board (FASB). This rule allows corporate holders of digital assets to mark their assets to market each quarter, rather than at the lowest valuation during ownership. Tesla's 9,720 BTC were valued at $1.076 billion by the end of 2024, significantly up from $184 million reported in previous quarters. This valuation boost contributed to Tesla's overall GAAP income of $2.3 billion for the quarter, despite an adjusted EPS of $0.73, which missed estimates of $0.76. The shares experienced a 3.5% increase in after-hours trading, reflecting the market's positive reception of the news despite the earnings miss. Tesla is now recognized as the sixth largest public company to hold Bitcoin on its balance sheet.

Source 🔗