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The Coin Rise 2025-01-30 10:30:43

Tesla Posts $600M Bitcoin Windfall Amid Accounting Rule Change

Tesla has reported a $600 million gain from its Bitcoin holdings in Q4 2024 , thanks to new accounting standards allowing corporations to record market values for digital assets. The company valued its Bitcoin stash at just over $1 billion during this period, a significant jump from the $184 million logged in previous quarters. The boost comes as a result of a Financial Accounting Standards Board (FASB) rule change in December 2023, which now permits crypto holdings to be listed at their estimated market value. Previously, companies were only allowed to decrease the value of these assets if their prices dropped but couldn’t reflect any gains until they were sold. Tesla’s newfound ability to report crypto gains on its balance sheet contributed to its $2.3 billion GAAP income in Q4 2024. However, despite the substantial Bitcoin windfall, the electric vehicle giant’s financial results fell short of Wall Street expectations. Mixed Earnings for Tesla Amid Bitcoin Gains The company reported total revenues of $25.71 billion for the quarter — a modest 2% year-on-year increase but below the $27.22 billion forecast by analysts. Earnings per share (EPS) came in at $0.73, missing the projected $0.76 EPS estimate. Operational expenses for Tesla rose to $2.59 billion, a 9% increase from the previous quarter. Following the earnings release on January 29, Tesla shares closed down 2.26% but rallied by 4.44% in after-hours trading to $406.36. Despite recent volatility, the company’s share price has surged 103.79% over the past 12 months, hitting an all-time high of $479 in December. Tesla’s journey with Bitcoin began in February 2021 when it made its first crypto purchase. The firm accumulated 42,902 Bitcoin before selling 75% of its holdings in July 2022, generating $936 million from the sale. Crypto as a Treasury Strategy Gains Momentum Tesla is not alone in integrating Bitcoin into its treasury strategy. Companies such as healthcare tech firm Semler Scientific, AI developer Genius Group, and video platform Rumble have also added Bitcoin to their corporate holdings. The trend was largely popularized by MicroStrategy, led by Bitcoin advocate Michael Saylor. The business intelligence firm holds a staggering 471,000 Bitcoin worth approximately $48 billion, making it the largest Bitcoin holder among publicly traded companies. With new accounting rules in place, Tesla’s recent windfall underscores the evolving landscape of crypto in corporate finance. The post Tesla Posts $600M Bitcoin Windfall Amid Accounting Rule Change appeared first on TheCoinrise.com .

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