30.01.2025 10:10
Under the leadership of Elon Musk, Tesla reported a gain of $600 million from Bitcoin assets in the fourth quarter of 2024, thanks to updated accounting rules. The company's digital asset valuations saw a significant increase with the new regulation.
Tesla, thanks to changes in accounting standards, achieved a profit of 600 million dollars from Bitcoin investments in the fourth quarter of 2024. The new regulation by the Financial Accounting Standards Board allowed companies to update the market value of their crypto assets every quarter. The digital asset portfolio of the company led by Elon Musk reached 1.076 billion dollars by the end of the year, while the upward trend in Bitcoin positively reflected on Tesla's financial statements.
Tesla's Bitcoin Profit Reached New Heights with Accounting Changes
With the implementation of the new accounting standards, Tesla achieved significant gains from Bitcoin investments in the fourth quarter of 2024. The regulation enacted by the Financial Accounting Standards Board enabled the company to record 600 million dollars in revenue from its crypto assets.
Before the regulation, companies could only update the value of their cryptocurrencies in case of a decline. Even if the market value increased, this rise could not be reflected in the balance sheets unless a sale occurred. With the new standard, Tesla can revalue its digital assets based on market value every three months.
Tesla's Bitcoin and cryptocurrency portfolio reached 1.076 billion dollars by the end of 2024. Especially in the last quarter of the year, the over 50% increase in Bitcoin's value positively impacted the company's crypto assets. During this period, Donald Trump's election as President of the United States and the growing interest in Bitcoin exchange-traded funds supported the cryptocurrency market.
According to Arkham Intelligence data, Tesla holds approximately 11,509 Bitcoins, valued at 1.21 billion dollars. According to CoinGecko's data, the company ranks as the fourth largest Bitcoin holder among publicly traded companies, following MicroStrategy, Marathon Digital, and Galaxy Digital. According to the latest market data, Bitcoin is trading at 105,020 dollars, with a 2.88% increase in the last 24 hours.
With the 600 million dollars in digital asset gains achieved in the fourth quarter of 2024, Tesla recorded a net income of 2.3 billion dollars according to generally accepted accounting principles. Although the company's year-end net income reached 7.1 billion dollars, its adjusted earnings per share fell short of expectations at 0.73 dollars. According to Google Finance data, Tesla shares fell by 2.26% to 389.1 dollars on Wednesday, but rebounded by 4.15% after the trading day.