In Q4, Tesla Boosted the Value of Its Bitcoin Holdings, Securing a $600M Gain.

Tesla Leverages New FASB Rule to Mark Bitcoin Holdings, Realizing $600M Gain in Q4

Tesla (TSLA) capitalized on a newly implemented accounting rule that allows corporate owners of digital assets to mark their holdings to market, resulting in a significant boost to its financials.

In its fourth-quarter earnings report, Tesla revealed that its 9,720 Bitcoin holdings were valued at $1.076 billion by the end of 2024, a notable increase from the $184 million value it had reported in previous quarters. This marked-to-market adjustment led to a $600 million gain in Tesla’s GAAP income, contributing to an overall GAAP income of $2.3 billion for the quarter.

The Financial Accounting Standards Board (FASB) recently issued a rule that requires corporate holders of digital assets to mark those assets to market each quarter, starting in the first quarter of 2025. However, companies had the option to adopt the new rule ahead of time, and Tesla appears to have chosen to do so.

Previously, companies were required to report the lowest value of their digital asset holdings over the period of ownership.

Tesla reported an adjusted earnings per share (EPS) of $0.73 for the quarter, slightly missing analyst expectations of $0.76. While the $600 million gain from Bitcoin holdings impacted GAAP income, it did not affect the adjusted EPS figure. Following the earnings release, Tesla’s stock saw a 3.5% increase in after-hours trading.

With its current holdings of 9,720 BTC, Tesla remains the sixth-largest publicly traded company in terms of Bitcoin ownership on its balance sheet, as reported by Bitcoin Treasuries.