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Here’s how Tesla’s 11,509 Bitcoin holdings affected Q4 profits
Tesla’s latest earnings report highlights a significant boost from its Bitcoin [BTC] holdings, reflecting the impact of a new accounting rule that allows companies to adjust digital asset valuations based on market prices each quarter. In Q4 2024, the electric vehicle giant reported a $2.3 billion in revenue, with $600 million attributed to gains from its BTC reserves.
Tesla’s total holdings now stand at 11,509 BTC, valued at approximately $1.19 billion, according to Arkham Intelligence. This substantial increase underscores Bitcoin’s growing influence on Tesla’s financial strategy.
The new Financial Accounting Standards Board (FASB) rule implemented in December 2023 has reshaped how corporations report their cryptocurrency holdings. Under this change, companies can now reflect the fair market value of digital assets on their balance sheets, aligning reported valuations with real-time market conditions. Previously, firms had to record impairment losses when crypto prices declined; they couldn’t adjust valuations upward unless they sold the assets, often leading to undervalued financial statements.
As expected, Tesla benefited significantly from this revision.
Source: ambcrypto.com
