Tesla has announced a $600 million paper gain from its Bitcoin holdings in the fourth quarter of 2024, attributed to new accounting regulations.
Tesla has announced a $600 million paper gain from its Bitcoin holdings in the fourth quarter of 2024, attributed to new accounting regulations. Under updated guidelines from the Financial Accounting Standards Board, companies can now adjust the value of their digital assets at market prices each quarter, rather than waiting until the assets are sold.
As a result of this change, Tesla's digital asset holdings surged to approximately $1.076 billion by the end of the fourth quarter, a significant increase from $184 million the previous quarter.
This growth coincided with a remarkable rise in Bitcoin prices, which increased by over 50% during the quarter. The surge was linked to various factors, including the reelection of Donald Trump as U.S. President and increased activity in spot Bitcoin exchange-traded funds (ETFs).
At the time of reporting, Bitcoin is trading at $105,303, reflecting a 2.88% increase in the past 24 hours. Despite not disclosing specific Bitcoin holdings in its Q4 report, Arkham Intelligence estimates that Tesla holds around 11,509 BTC, valued at approximately $1.21 billion.
This positions Tesla as the fourth-largest publicly traded Bitcoin holder, following MicroStrategy, Marathon Digital, and Galaxy Digital.
For the fourth quarter, Tesla reported a net income of $2.3 billion under generally accepted accounting principles (GAAP), contributing to a total net income of $7.1 billion for the year. The company's adjusted earnings per share were reported at $0.73, slightly below the expected $0.76.
Tesla's stock experienced a decline of 2.26% to $389.10 on Wednesday, but rebounded with a 4.15% increase in after-hours trading, according to Google Finance.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
