With an impressive $600 million profit in its Q4 2024 figures, Tesla’s significant Bitcoin investment has helped the firm. A new crypto accounting regulation lets the electric car manufacturer display the Bitcoin market value for the market. For the quarter, this raised its official revenue to $2.3 billion. Its quarterly income rose to $2.3 billion. Tesla didn’t reach Wall Street’s sales and profit expectations, but its Bitcoin results show the growing role of digital currencies in business finance.
Bitcoin Value Revealed by New Accounting Rule
A mid-December 2023 FASB ruling benefited Tesla. When crypto prices plummeted, corporations had to cut the worth of their assets but couldn’t boost them unless they sold them. This previous method devalued Bitcoin market value in company financial reports. Now that firms can declare their market value directly, Tesla can report that its Bitcoin is worth over $1 billion, up from $184 million.
The Tesla Bitcoin Stash
Bitcoin Treasuries reports Tesla has 9,720 BTC. The company’s crypto reserves rose $589 million as bitcoin prices reached $105,360. After this adjustment offset reduced sales, Tesla earned $2.3 billion in GAAP income for the fourth quarter.
Tesla bought 42,902 BTC in February 2021. The business sold 75% of its Bitcoin in July 2022. Despite recent selloffs, Tesla still retains a lot of Bitcoin, which helped them profit this quarter.
Stocks change
Tesla sold $25.71 billion in the fourth quarter, below experts’ predictions of $27.22 billion. Strong Bitcoin results boosted the company’s stock 4.44% to $406.36 after-hours. On Jan. 29, the stock fell 2.26%. Tesla’s stock price rose 103.79% last year, peaking at $479 on December 17.
Bitcoin
Tesla isn’t the only corporation with Bitcoin reserves. The largest public Bitcoin owner, MicroStrategy, holds 471,000 BTC worth $48 billion. Semler Scientific, Genius Group, and Rumble are using their scheme. The $600 million Tesla profit may motivate other businesses to invest in cryptocurrencies as more use Bitcoin.
Conclusion
Tesla earned hundreds of millions in the fourth quarter of 2024 on its Tesla Bitcoin holdings. The company missed its sales goals, but Bitcoin earnings helped mitigate the loss, demonstrating the value of digital assets for enterprises. With the new FASB rule and more Bitcoin users, Tesla’s cryptocurrency investments could affect its finances.
