Tesla's Bitcoin Value Surges After New Rule Changes How It's Recorded

Under Trump's leadership, Bitcoin has found its place in the mainstream financial system, and companies are finding new ways to incorporate it into their financial strategies.

Bitcoin has found its mainstream financial system use case under Trump’s leadership, with companies finding new ways to integrate it into their financial strategies. Being one of the largest corporate Bitcoin holders, Tesla has reported a massive $600 million gain on its Bitcoin holdings in Q4 2024. This is thanks to a new accounting rule that now allows firms to reflect the market value of their crypto assets.

Tesla’s Bitcoin Holdings Value Surged

Filed on Jan. 29, Tesla’s financial report for Q4 2024 shows that its Bitcoin holdings are now valued at over $1 billion, which is a major jump from the previously recorded $184 million. According to Bitcoin Treasuries, the company currently holds 9,720 BTC.

Tesla first bought Bitcoin in 2021, accumulating 42,902 BTC before selling 75% of its holdings in 2022 for $936 million. Other companies that have adopted Bitcoin as part of their treasury strategy include Semler Scientific, Genius Group, and Rumble. However, MicroStrategy remains the largest corporate Bitcoin holder, with 471,000 BTC worth around $48 billion.

Now, let’s break it down by category. Of Bitcoin’s 21 million total supply, around 1.34 million BTC is held by ETFs. ETFs hold the largest share, followed by government, public company, and private firm. This is in addition to BTC mining company and DeFi platform holdings.

New Rule Changes How Bitcoin Is Recorded

However, this new rule by the Financial Accounting Standards Board (FASB), which was introduced in December 2023, now allows companies to report the market value of their crypto holdings. Before this, firms had to record losses if Bitcoin’s price dropped but couldn’t recognize gains unless they sold the asset. This change provides a more accurate picture of companies’ financial positions and has significantly benefited Tesla.

Tesla’s Q4 Earnings Fell Short

Despite the Bitcoin boost, Tesla’s total Q4 revenue came in at $25.71 billion, which is a 2% increase from last year but fell short of the $27.22 billion that analysts had anticipated. The company also reported earnings per share (EPS) of $0.73, which is slightly lower than the projected $0.76. Operating expenses rose to $2.59 billion, which is a 9% increase from the previous quarter.

After the earnings announcement, Tesla’s stock (TSLA) dropped by 2.26%. However, after-hours trading saw a rebound of 4.44%, bringing the stock to $406.36. Over the past year, Tesla’s share price has surged by 103.79%, reaching an all-time high of $479 in December.

This massive accumulation by companies shows how interest in the asset is growing and created global interest in adding Bitcoin to their mainstream finance to support their economy. Moreover, many US regions have already passed Bitcoin Strategic Reserve plans like Utah and Arizona.

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FAQs

MicroStrategy leads with 471,000 BTC (~$48 billion), far surpassing Tesla and other corporate Bitcoin holders.

Tesla holds 9,720 BTC as of Q4 2024.