Tesla Reports $589 Million Gain From BTC Holdings

Elon Musk’s Tesla Reports Bitcoin Gain Of $589 Million Following US Accounting Rule Change

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Updated: 30 January 2025

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Electric vehicle manufacturer Tesla reported a $589 million gain on its Bitcoin holdings in the fourth quarter last year after a change in US accounting rules that allowed companies to record the market value of crypto on their books.

Tesla, which was founded by technology billionaire Elon Musk, released its Q4 2024 results yesterday. They show that the company valued its holdings in BTC at more than $1 billion, a substantial increase from the $184 million it logged during previous quarters.

New FASB Rule Lets Companies Record Market Value Of Crypto

A 2023 Financial Accounting Standards Board (FASB) rule that came into effect around the middle of December 2024 lets companies use the estimated value of their digital asset holdings in their balance sheets.

Prior to the new rule, a corporate’s crypto holdings decreased on the books if the digital assets lost value in an accounting period. The recorded value of the assets would then not increase until the company sold the crypto, even if the value of the holdings rose. This valued a company’s assets lower than their actual market value.

Following the rule change, Tesla’s holdings in the largest crypto by market cap posted a net gain of $589 million over the quarter. The electric vehicle manufacturer’s Bitcoin holdings currently stand at 9,720 BTC, data from Bitcoin Treasuries shows.

Tesla Earnings Below Wall Street Estimates

Tesla’s earnings missed Wall Street estimates with revenues for the company reaching $25.71 billion. Despite this being a 2% year-on-year increase, it was below the $27.22 billion analysts had projected.

26% of Tesla $TSLA earnings this quarter has come from unrealized Bitcoin $BTC gains! pic.twitter.com/8lVZWBTyhB

— ₿itcoin₿anker (d/acc) ⚡️ (@BitcoinBanker42) January 29, 2025

The company also missed profit estimates, with reported earnings per share of $0.73. This was down from the $0.76 per share analysts had anticipated.

Tesla stock (TSLA) dropped over 2% during yesterday’s trading session, but rallied more than 4% in after hours trading to stand at $405.25 as of 1:24 a.m. EST, according to Google Finance.