Electric car giant Tesla reported a profit of $600 million on its Bitcoin stash for the fourth quarter of 2024 following the new FASB accounting rule.
Tesla reported that its 9,720 BTC was worth $184 million for four straight quarters before now. However, the Elon Musk-owned firm disclosed in its Wednesday Q4 2024 earnings attestation that the stash’s value at the quarter’s close was $1.08 billion.
The report pattern changed following the new Financial Accounting Standards Board (FASB) accounting framework, which took effect in January 2025. The regulation mandated public companies holding Bitcoin to match their stash’s valuation to the market price in its quarterly report.
Tesla Boosts Earnings With $600M Bitcoin Gains
Before now, Tesla reported its Bitcoin holding with a carrying value of $184 million, reflecting its lowest recorded value during its ownership. This left behind all gains the corporate firm accrued by keeping the asset.
Leveraging the new FASB rule, Tesla reported quarterly earnings of $600 million from its Bitcoin bag, bringing its net income to $2.3 billion in Q4 2024. Furthermore, the electric car company disclosed that the rule change boosted its earnings per share by 68 cents.
In reality, Tesla realized about $347 million from its Bitcoin holding in the fourth quarter. This is because its 9,720 BTC had a fair value of $729 million, far higher than the $184 million reported.
Meanwhile, Tesla’s substantial Bitcoin earnings came from its early adoption of the pioneering cryptocurrency. The company acquired $1.5 billion worth of Bitcoin in 2021 amid its portfolio diversification strategy.
Although it has sold a considerable portion of it, data from the Bitcoin Treasuries shows that it is the sixth-largest public company holding the asset.
Tesla’s Stock Soars Despite Target Miss
Moreover, Tesla’s added advantage from its Bitcoin holding was insufficient to meet Wall Street’s earnings expectations. For context, the electric vehicle manufacturer recorded revenue of $25.71 billion and earnings per share of 73 cents, below expectations of $27.76 billion and 76 cents.
Despite the modest 2% increase in earnings quarter over quarter, Tesla’s stock (NASDAQ: TSLA) surged hours after the trading session’s close. According to Google Finance, the stock reached $405.25 after the market closed, up over 4% from its closing price of $389.10.
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