Tesla has reported a significant $600 million gain on its Bitcoin holdings for the fourth quarter, thanks to a new accounting standard that allows businesses to assess digital assets at market value. This adjustment increased Tesla’s reported digital asset value from $184 million to approximately $1.076 billion.
Currently, Tesla possesses 11,509 BTC, which amounts to around $1.19 billion based on present market conditions, according to data from Arkham Intelligence. However, the company did not specify its Bitcoin holdings in its quarterly report, only mentioning the mark-to-market gain related to “digital assets.”
The new accounting rule introduced by the Financial Accounting Standards Board (FASB) in December 2023 requires companies to recognize digital assets at their fair market value, instead of the minimal recorded price since acquisition. This means that Tesla can now adjust the value of its Bitcoin assets quarterly, similar to other financial assets like stocks. Previously, the company could only recognize losses when Bitcoin prices dropped and could not report gains unless the assets were sold.
Tesla opted to implement this accounting rule ahead of the 2025 deadline, which is mandatory for all organizations with fiscal years starting after December 15, 2024.
Despite reporting adjusted earnings per share of $0.73, slightly below Wall Street’s forecast of $0.78, Tesla’s stock rose by 4.3% in after-hours trading to $406.25. This increase followed a 2.25% decline during regular trading hours. With its continued Bitcoin investments, Tesla remains one of the largest publicly traded holders of the cryptocurrency, alongside other companies like MicroStrategy and Coinbase, which may also see a rise in their reported asset values under the new rules.
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