Tesla reported a $600 million gain from its Bitcoin holdings in Q4 2024, attributed to new accounting rules which permit companies to record the market value of crypto assets. The company's Bitcoin holdings increased to approximately $1 billion from $184 million in prior quarters, with a total of 9,720 BTC on its books. The rule change, instated by the Financial Accounting Standards Board (FASB), allows corporate entities to reflect the market value of digital assets more accurately on their balance sheets, mitigating prior limitations where asset values could only decline without increasing until sold. Despite strong gains from Bitcoin, Tesla's overall Q4 earnings fell short of Wall Street expectations, reporting $2.3 billion in GAAP income and $25.71 billion in total revenue, which was slightly below projected figures. After a hit to its stock price following the earnings result, Tesla recovered in after-hours trading. The company initially built up a significant Bitcoin reserve, having acquired a total of 42,902 BTC before selling 75% in 2022. Tesla's share price has risen 103.79% over the past year, peaking at $479 in December.

Source 🔗