Tesla Gains $600M from Bitcoin Under New FASB Rule, Boosting Holdings to $1.076B in Q4 2024

This financial shift comes after the Financial Accounting Standards Board (FASB) introduced a rule change in December 2023.

Tesla has reportedly gained $600 million in the fourth quarter of 2024 from its Bitcoin holdings, thanks to a recent change in accounting regulations. The company's Bitcoin stash is now valued at approximately $1.19 billion.

This shift comes after the Financial Accounting Standards Board (FASB) introduced a rule change in December 2023. The new rule allows companies to report digital assets at their current market value instead of the lowest recorded price since purchase.

As a result of this change, Tesla was able to book a net gain from Bitcoin in Q4 2024, which amounted to $589 million. The company placed this gain under the “digital assets” category rather than explicitly stating its Bitcoin holdings in its recent financial statement.

However, based on Tesla's previous Bitcoin holdings and the reported net gain, it can be deduced that the company's Bitcoin holdings increased in value to $1.19 billion from 11,509 BTC. This is up from previous quarters when the company's Bitcoin stake was valued at just $184 million.

For context, Tesla last reported having 11,509 BTC in its assets during Q3 2024. The company continued to hold onto its crypto during an unstable market. Its Q3 earnings also 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.

Moreover, 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 later confirmed to be a wallet rotation rather than an indication of a sale.

The assets had been largely untouched for nearly two years. According to several analysts, the move was designed to help Tesla secure and manage Bitcoin more efficiently. At the time of the transfer, Bitcoin was trading at around $60,000.

Since then, the asset has rallied to new all-time highs, and as of this writing, it is trading at $104,945.32, showing a 2.39% increase over the past day.

The price surge, which is approaching Bitcoin's all-time high territory, points to strong investor confidence in the asset, especially considering the asset's gains over the past year.