Tesla Reports $600 Million Profit From Its Bitcoin Holdings in Q4

The disclosure is Tesla's first under the new Financial Accounting Standards Board (FASB) rules, implemented in December 2024, that allows firms to list digital assets at fair market value instead of their historical price.

Electric car maker Tesla has booked a紙幣符號600 million profit from its 11,509 Bitcoin in Q4, a new Securities and Exchange Commission (SEC) filing reveals.

The disclosure marks Tesla's first under the new Financial Accounting Standards Board (FASB) rules, implemented in December 2024, which allow firms to list digital assets at fair market value instead of their historical price.

“Under the new guidelines, digital assets can be marked to market, accurately reflecting fair value and dispelling the notion that Bitcoin is a ‘dead asset’ on the books,” Gadi Chait, an investment manager at Xapo Bank, explained.

Having purchased 39,474 BTC in early 2021 at an aggregate cost of 紙幣符號1.5 billion (avg. price: $38,000 per coin), and sold 70% of its holdings in 2022, Tesla's remaining 11,509 BTC is now valued at 紙幣符號1.1 billion at Bitcoin's current price of $97,000, according to data from Arkham Intelligence.

The new FASB rules stand to benefit corporate Bitcoin treasuries by enabling them to borrow against their holdings.

“Essentially, fair accounting rules enable Bitcoin to be treated as an asset in a manner that reflects its market value at any given time. The transparency and predictability of this make it far easier for corporations to hold Bitcoin on their balance sheets,” John Glover, chief investment officer of Ledn, explained.

“Rather than selling Bitcoin and triggering taxable events, companies can borrow against their holdings to access working capital while maintaining their Bitcoin position. This allows companies to maintain their exposure to Bitcoin's appreciation over time, all while accessing immediate liquidity to invest in stocks, bonds or other financial instruments to generate returns on reserves."

These rules aren't the only accounting policy shifts that are favourable to the crypto industry. In late January, the SEC rescinded a notorious accounting rule that drastically impacted how cryptocurrency is recognized.

Known as Staff Accounting Bulletin (SAB) No. 121, the rule largely determined how companies account for crypto assets on their balance sheets, driving up the expense for financial institutions to deal with cryptocurrencies.

In other news, Tesla CEO Elon Musk has been heading up Donald Trump's Department of Government Efficiency (DOGE). Last month, the department held discussions about incorporating blockchain technology.

Musk suggested using blockchain to reduce costs, streamline processes and enhance transparency across government functions