Tesla Reports $600B Bitcoin Gain

News
Reading Time: < 1 minute

Tesla’s reported net income for the fourth quarter received a significant boost from its Bitcoin holdings, due to a recently implemented rule change for accounting of digital assets.

Previously, the company had reported a carrying value of $184 million for its digital assets in the past four quarters, but in the earnings report released on Wednesday, that number suddenly jumped to $1.08 billion for the December period.

This increase was a result of the new policy from the Financial Accounting Standards Board, which requires companies to mark their digital asset holdings to market each quarter, starting in 2025.

Prior to this change, companies that owned Bitcoin had to report their holdings at the lowest value recorded during their ownership, regardless of any subsequent price increase.

According to Tesla’s earnings presentation, this change resulted in a 68 cents increase in earnings per share for the fourth quarter, as mentioned by CFO Vaibhav Taneja during the earnings call where he also acknowledged the $600 million net income increase.

If you like our content and want to support us, please follow us on X, Facebook and Instagram and don’t miss the latest news!