In the fourth quarter of 2024, Tesla experienced a significant growth in its financial performance, partially attributable to its ownership of Bitcoin.
The company recorded a $600 million profit due to a modification in accounting regulations, which allowed Tesla to appraise its Bitcoin at prevailing market rates.
This change in accounting standards was a result of a new mandate from the Financial Accounting Standards Board (FASB), requiring businesses to re-evaluate and report the current market value of their digital assets every quarter starting in 2025.
Tesla appears to have opted for early adoption of this rule. Previously, companies were obliged to report the value of their digital assets based on the lowest valuation during their ownership.
However, following the adjustment to reflect current market prices, Tesla’s Bitcoin holdings were substantially revalued, and the company did not sell any of its Bitcoin during Q4, according to its released earnings statement.
