Tesla Reports $600M Bitcoin Gain in Q4 Under New Accounting Rule

YEREVAN (CoinChapter.com) —  Tesla reported a $600 million Bitcoin gain in the fourth quarter of 2024 due to a new accounting rule that allows companies to record crypto assets at market value. The Financial Accounting Standards Board (FASB) introduced the rule in December 2023, impacting companies holding Bitcoin (BTC) and other digital assets.

Tesla’s Q4 2024 earnings report, released on Jan. 29, valued its Bitcoin holdings at over $1 billion, a sharp increase from the $184 million recorded in previous quarters. The company currently holds 9,720 BTC, according to Bitcoin Treasuries. The new rule replaces the previous accounting method, where companies could only recognize crypto losses but not gains unless the assets were sold.

Tesla’s Q4 Earnings Show Bitcoin’s Impact

Tesla’s Q4 2024 GAAP income was $2.3 billion, boosted by the $600 million Bitcoin gain. However, total revenue for the quarter stood at $25.71 billion, showing a 2% year-on-year increase, but missing analyst estimates of $27.22 billion.

Tesla’s earnings per share (EPS) were $0.73, lower than the projected $0.76 EPS. The company’s third-quarter operating expenses increased to $2.59 billion, reflecting a 9% rise from the previous quarter.

Tesla’s Bitcoin Holdings Over the Years

Tesla entered the Bitcoin market in February 2021, purchasing 42,902 BTC for $1.5 billion. In July 2022, the company sold 75% of its Bitcoin, liquidating 30,000 BTC for $936 million.

Despite the 2022 Bitcoin sale, Tesla continued holding a portion of its Bitcoin holdings. The company did not sell any Bitcoin in Q3 2024 and now holds 9,720 BTC, valued at over $1 billion.

Tesla Stock Movement After Q4 Report

Following the Q4 earnings report, Tesla’s stock (TSLA) dropped 2.26% on Jan. 29 but gained 4.44% in after-hours trading, reaching $406.36, according to Google Finance. Over the past 12 months, it’s share price increased by 103.79%, reaching an all-time high of $479 on Dec. 17.

Other Companies Holding Bitcoin

Tesla is one of several companies investing in Bitcoin as a treasury asset. Firms like Semler Scientific, Genius Group, and Rumble have also added Bitcoin holdings to their balance sheets.

MicroStrategy remains the largest corporate Bitcoin holder, with 471,000 BTC, valued at $49 billion, according to Saylor Tracker.

The FASB rule change now allows companies to report crypto market value in financial statements, reflecting their true asset value.
At the moment of writing, Bitcoin (BTC) is trading at $105,210 on Bitstamp, showing a minor intraday change of -0.01%. The Relative Strength Index (RSI) stands at 63.72, indicating a moderately bullish momentum. As of now, BTC shows resilience, staying above the $105,000 mark.

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