• Tesla reported a $600 million gain on its Bitcoin holdings in Q4 2024 after adopting a new accounting rule, raising its digital asset value to $1.076 billion from $184 million.
  • Tesla holds 11,509 BTC, valued at approximately $1.19 billion based on current market prices, making it one of the largest publicly traded Bitcoin holders.

Tesla has reported a $600 million gain on its Bitcoin holdings in Q4 2024 after adopting a new accounting rule that allows companies to value digital assets at market prices each quarter. This change has significantly increased the company’s reported digital asset value from $184 million to $1.076 billion.

According to Arkham Intelligence data, Tesla’s Bitcoin holdings stand at 11,509 BTC, with an estimated value of $1.19 billion based on current market prices. However, the company did not explicitly disclose its Bitcoin holdings in its Q4 report, only referencing a $600 million mark-to-market gain on “digital assets.”

The Financial Accounting Standards Board (FASB) introduced this new rule in December 2023, requiring companies to report digital assets at fair market value rather than at their lowest recorded price since purchase. Tesla has adopted the standard ahead of its mandatory 2025 implementation for fiscal years beginning after December 15, 2024.

Previously, companies could only record losses on Bitcoin if its price declined but were not allowed to reflect gains unless the asset was sold. Under the new rule, crypto holdings can be adjusted quarterly to reflect market movements, aligning them with how stocks and other financial assets are valued.

Despite reporting adjusted earnings-per-share of $0.73—missing Wall Street’s estimate of $0.78, according to TipRanks data—Tesla shares rose 4.3% in after-hours trading to $406.25. This followed a 2.25% drop in normal trading to $389.10, according to Google Finance data.

With 11,509 BTC, Tesla remains one of the largest publicly traded Bitcoin holders. Other crypto-exposed companies, including MicroStrategy and Coinbase, could also see their reported asset values rise under the new accounting rule this year.

Edited by Harshajit Sarmah