- Tesla gains $600M from Bitcoin thanks to new accounting rules in Q4 2024.
- Bitcoin surge boosts Tesla’s digital assets to $1.19B in Q4.
- Tesla’s Bitcoin transfers in October 2024 seen as a wallet rotation, not a sale.
Tesla has reported a $600 million profit in the fourth quarter of 2024 from its Bitcoin holdings following the introduction of new accounting regulations. The company’s Bitcoin holdings are now valued at approximately $1.19 billion, an increase over the past quarter.
This financial shift comes after the Financial Accounting Standards Board (FASB) introduced a rule change in December 2023. This new rule allows companies to report digital assets at their current market value instead of the lowest recorded price since purchase.
Bitcoin Gains Boost Tesla’s Q4 Performance
Tesla’s Bitcoin holdings, now at 11,509 BTC, increased in value to $1.19 billion. This is up from previous quarters when the company’s Bitcoin stake was valued at just $184 million.
Related: Tesla’s Bitcoin Bet Pays Off: Holdings Now Worth Over $1 Billion
According to Bitcoin Treasuries, the net gain from Bitcoin in Q4 2024 amounted to $589 million. Tesla placed this gain under the “digital assets” category rather than explicitly stating its Bitcoin holdings.
Tesla’s Bitcoin Movements and Q3 2024 Insights
Tesla had as much Bitcoin in its assets in Q3 2024 as it did in the previous quarter. The company continued to hold onto its crypto during an unstable market. Also, its Q3 earnings report confirmed that it had maintained its Bitcoin position, which had appreciated when Bitcoin hit $89,000.
This price increase, recorded in Q3, increased the valuation of Tesla’s digital assets, setting the stage for the company to benefit from the new accounting rules in Q4.
Additionally, Tesla made headlines in October 2024 when it transferred its entire Bitcoin holdings into seven new wallets. This transfer, valued at approximately $760 million, was seen as a wallet rotation rather than an indication of a sale.
The assets had been dormant for nearly two years. Analysts speculated that the move was designed to secure and manage Bitcoin more efficiently.
Related: Tesla Moves Its Massive Bitcoin Stash: What’s Behind the Shift?
At the time of this writing, Bitcoin showed strong market momentum, trading at $104,945.32, reflecting a 2.39% increase over the past day. This price surge, which is approaching Bitcoin’s all-time high territory, points to strong investor confidence in the asset.
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