Tesla Gains $600M From Bitcoin in Q4 Under New Accounting Rules

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  • Tesla gains $600M from Bitcoin in Q4 2024 due to new accounting rules.
  • Tesla now values 9,720 Bitcoin at over $1 billion, thanks to market value rules.
  • Despite Bitcoin gain, Tesla misses Q4 earnings estimates, reports $2.3B income.

Tesla reported a $600 million gain from its Bitcoin holdings in the fourth quarter of 2024. The company valued its 9,720 Bitcoin at $1.076 billion, up from $184 million in previous quarters. This increase followed new accounting rules that allow companies to record digital assets at market value.

New FASB Rule Changes Crypto Reporting

The Financial Accounting Standards Board (FASB) introduced a rule requiring companies to update crypto values quarterly. Previously, companies had to record digital assets at their lowest valuation during ownership. This change helped Tesla reflect the actual market value of its Bitcoin holdings.

Tesla adopted the rule before the 2025 deadline, boosting its balance sheet significantly. The new approach allows businesses to report digital assets more accurately. Many companies holding Bitcoin are expected to benefit from this updated policy.

Tesla’s Q4 Revenue and Profit Miss Estimates

The total revenue for Tesla in the fourth quarter of 2024 amounted to $25.71 billion. The reported total revenue exceeded previous yearly figures by 2% at $25.71 billion proving unable to match analysts’ predicted $27.22 billion. Sporting a GAAP income of $2.3 billion, the company gained money through its Bitcoin assets.

Financial analysts projected Tesla’s earnings per share to be $0.76 yet actual results showed $0.73 due to the company’s Bitcoin purchase. During the quarter, Tesla experienced a 9.1% expense rise resulting in $2.59 billion operating expenses. During this period, Tesla experienced mixed financial outcomes while receiving worth from its Bitcoin-related investments.

Tesla Stock Recovers After Initial Drop

Tesla stock declined by 2.26% following its earnings announcement before climbing 4.44% during post-market trading. During the previous year, Tesla stock prices increased by 103.79%. Strong investor interest caused Tesla stock to achieve its highest value at $479 during December 2024.

Source: Google Finance

Tesla started acquiring Bitcoin in 2021 through the development of a major cryptocurrency fund. During 2022, the firm executed the sale of 75% of its Bitcoin assets to generate revenue totaling $936 million. Companies such as MicroStrategy and Rumble alongside Tesla have set Bitcoin as their treasury asset.

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