Tesla has recorded a significant boost in its Bitcoin holdings, reporting a $600 million gain in the fourth quarter of 2024. This increase is attributed to a new accounting rule that allows companies to reflect the market value of their cryptocurrency assets.
Tesla’s Bitcoin Holdings Surge to Over $1 Billion
In its Q4 2024 financial report released on January 29, Tesla disclosed that the value of its Bitcoin holdings had grown to just over $1 billion. This marks a substantial increase from the previously recorded $184 million in prior quarters. The company now holds approximately 9,720 BTC, according to Bitcoin Treasuries.
The gain stems from a rule change by the Financial Accounting Standards Board (FASB), which came into effect in mid-December 2023. The new regulation permits companies to record digital assets at their estimated market value on financial statements. Previously, firms had to record losses when crypto values declined but couldn’t update their books to reflect gains unless they sold the assets.
Tesla’s Financial Performance in Q4 2024
Tesla reported a Generally Accepted Accounting Principles (GAAP) income of $2.3 billion in the fourth quarter, with the $600 million Bitcoin gain playing a key role in boosting earnings.
However, the company’s overall earnings fell short of Wall Street expectations. Tesla posted total revenue of $25.71 billion, reflecting a 2% year-over-year growth but missing analysts’ estimates of $27.22 billion. Additionally, earnings per share (EPS) came in at $0.73, below the forecasted $0.76 per share.
Operating expenses for the quarter stood at $2.59 billion, marking a 9% increase from the previous quarter.
Tesla Stock Performance and Bitcoin Strategy
Tesla’s stock (TSLA) fell 2.26% on January 29 following the earnings report but rebounded after hours with a 4.44% gain to $406.36, according to Google Finance. Over the past year, Tesla’s share price has surged 103.79%, reaching an all-time high of $479 on December 17.
Tesla initially entered the crypto market in February 2021, accumulating 42,902 BTC before selling 75% of its holdings in July 2022. The sale of over 30,000 Bitcoin at that time generated $936 million.
Other companies have also adopted Bitcoin as part of their treasury strategy. Firms like Semler Scientific, Genius Group, and Rumble have followed the trend pioneered by MicroStrategy, which remains the largest public Bitcoin holder with 471,000 BTC worth approximately $48 billion, according to Saylor Tracker.
