Tesla Reports $600 Million Bitcoin Gain in Q4 Under New Accounting Rule

Highlights:

• Tesla’s Bitcoin holdings rose by $600 million in Q4 after a new accounting rule allowed market price adjustments.
• Despite gains, Tesla’s Q4 earnings missed Wall Street estimates with $25.71B in revenue.
• Other firms like Semler Scientific follow MicroStrategy’s lead in accumulating Bitcoin.

Elon Musk-led electric vehicle maker Tesla’s Bitcoin (BTC) holdings rose by $600 million in the fourth quarter after implementing a new accounting rule, the company reported on Jan. 29. The accounting rule allows companies to adjust the value of digital asset holdings at market prices each quarter.

Before the Financial Accounting Standards Board (FASB) rule was introduced last month, companies had to reduce the value of their crypto holdings in financial records if they lost value during an accounting period. This could make the company’s assets appear less valuable than they actually were. Without the rule change, the recorded value couldn’t increase unless the assets were sold, even if the value went up.

#Tesla's Q4 2024 report reveals a $600 million gain from #Bitcoin holdings.

The company holds 9,720 $BTC worth $1.076B by the end of 2024 pic.twitter.com/PIfmAKSeu6

— BNB Swap (@BNBSwap) January 30, 2025

Tesla’s Bitcoin Holdings Surge to $1.076B in Q4

With the new rule, Tesla’s digital asset holdings grew to $1.076 billion by the end of the previous year, up from $184 million the previous quarter. In the last quarter, Bitcoin price rose by over 50%. This was due to Donald Trump’s reelection and strong activity in Bitcoin exchange-traded funds (ETFs). Bitcoin reached new all-time highs, and other cryptocurrencies also saw gains.

Meanwhile, Tesla chose not to disclose its Bitcoin holdings in the Q4 report. According to Arkham Intelligence, the company owns about 11,509 BTC, worth approximately $1.21 billion. This places Tesla as the fourth-largest publicly traded Bitcoin holder, behind MicroStrategy, Marathon Digital, and Galaxy Digital, as per CoinGecko.

Tesla Reports Q4 Income of $2.3 Billion, Misses Earnings Expectations

Tesla reported a generally accepted accounting principles (GAAP) income of $2.3 billion for Q4, driven by a $600 million gain from its Bitcoin holdings. However, Tesla’s Q4 earnings and profit fell short of Wall Street’s expectations. Total revenues were $25.71 billion, a 2% year-on-year increase but slightly below the $27.22 billion analysts had predicted. The company reported adjusted earnings per share of $0.73, missing Wall Street’s estimate of $0.78.

After the earnings report, Tesla’s stock (TSLA) fell by 2.26%. However, in after-hours trading, it bounced back by 4.44%, reaching $406.36. Over the past year, Tesla’s share price has risen by 103.79%, hitting a record high of $479 in December.

Companies Follow MicroStrategy’s Lead in Bitcoin Accumulation

Other companies, such as healthcare tech firm Semler Scientific, AI developer Genius Group, and YouTube alternative Rumble, have also adopted Bitcoin as part of their treasury strategy, following the example set by MicroStrategy. According to Saylor Tracker, MicroStrategy holds 471,000 Bitcoins, valued at $48 billion, making it the largest Bitcoin holder among public companies.

Companies’ significant accumulation of Bitcoin reflects increasing interest in the asset, sparking global attention toward incorporating Bitcoin into mainstream finance to strengthen economies. Additionally, several U.S. regions, such as Utah and Arizona, have already implemented Bitcoin Strategic Reserve plans.