Tesla has reported a $600 million gain from its Bitcoin holdings in the fourth quarter of 2024, benefiting from new accounting standards that allow companies to record the market value of digital assets on their books.
According to Tesla’s Q4 2024 earnings report, released on 29 January 2025, the company valued its Bitcoin holdings at just over $1 billion, a significant increase from the $184 million it recorded in previous quarters.
Tesla’s total Bitcoin stash now stands at 9,720 BTC, according to Bitcoin Treasuries. Tesla’s average purchase price per Bitcoin stands at $34,722, and with Bitcoin’s recent surge in value, the company’s holdings have yielded a profit of 203.03%
BREAKING NEWS: Tesla Holds Steady on its #Bitcoin Investment, Keeping 9,720 $BTC$doge $eth $xrp $sol $ada $bnb $elon pic.twitter.com/H4cahiDAWs
— BITCOIN🧨A1MILLON (@Bitcoina1millon) January 29, 2025
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FASB Rule Change Drives Tesla’s Bitcoin Gains
The gain is a result of a rule change by the Financial Accounting Standards Board (FASB), which came into effect in December 2023. The new rule allows corporate holders of cryptocurrencies to report digital assets at their market value, aligning financial statements more closely with actual asset valuations.
Under previous accounting standards, companies holding crypto assets were required to record losses if the value of their holdings declined within an accounting period.
However, increases in market value could not be reflected in financial statements until the assets were sold. This often led to discrepancies between a company’s reported financials and the actual market value of its digital assets.
Tesla’s fourth-quarter results show a GAAP income of $2.3 billion, with the Bitcoin gains playing a key role in boosting its financial position.
However, the company still missed Wall Street estimates, reporting total revenues of $25.71 billion, which marked a 2% year-over-year increase but fell short of analysts’ expectations of $27.22 billion.
Additionally, Tesla missed its profit estimates, reporting earnings per share (EPS) of $0.73, below the $0.76 that analysts had forecasted. The company’s operating expenses rose 9% from the previous quarter, reaching $2.59 billion in Q4 2024.
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Tesla’s Stock Performance And Bitcoin Strategy
Following the earnings release, Tesla’s stock (TSLA) closed down 2.26% on Jan. 29, though it saw a 4.44% after-hours rally, reaching $406.36, according to Google Finance. Over the past year, Tesla’s share price has surged by 103.79%, peaking at an all-time high of $479 on Dec. 17.
Tesla first invested in Bitcoin in February 2021, accumulating 42,902 BTC before selling 75% of its holdings in July 2022. The sale of over 30,000 BTC generated $936 million at the time.
Tesla is among several companies incorporating Bitcoin as a treasury asset, a strategy pioneered by MicroStrategy, which currently holds 471,000 BTC worth $48 billion, according to Saylor Tracker.
Other firms, including Semler Scientific, Genius Group, and Rumble, have also added Bitcoin to their corporate balance sheets, reinforcing the growing trend of businesses adopting digital assets.
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