Tesla has reported a staggering $600 million gain from its Bitcoin holdings in Q4 2024, thanks to a newly implemented accounting rule that allows companies to reflect the market value of their digital assets on financial statements.

The company’s latest financial report, released on Jan. 29, shows Tesla’s Bitcoin holdings surged to just over $1 billion, a massive increase from the previously recorded $184 million in past quarters. The updated valuation resulted in a net gain of $589 million on its Bitcoin stash, which now stands at 9,720 BTC, per Bitcoin Treasuries data.

The shift comes as a result of a 2023 rule change by the Financial Accounting Standards Board (FASB), which took effect in December. Previously, corporate crypto assets could only be recorded at their lowest value in an accounting period, preventing firms from recognizing gains unless the assets were sold. The new rule eliminates this restriction, allowing companies to better reflect the true market value of their crypto holdings.

Despite the Bitcoin boost, Tesla’s overall Q4 earnings fell short of Wall Street estimates. The company reported a GAAP income of $2.3 billion on revenues of $25.71 billion, missing analysts’ projection of $27.22 billion. Earnings per share came in at $0.73, slightly below the expected $0.76.

Tesla’s stock (TSLA) closed down 2.26% on Jan. 29 but recovered after hours, climbing 4.44% to $406.36. Over the past year, its share price has surged 103.79%, peaking at an all-time high of $479 on Dec. 17.

Tesla first entered the crypto space in 2021, accumulating 42,902 BTC before selling 75% of its holdings in 2022 for $936 million. Other firms, including MicroStrategy, Rumble, and Genius Group, continue to use Bitcoin as a strategic treasury asset.