The car manufacturer Tesla declared a substantial gain of $ 600 million on its Bitcoin investments in the fourth quarter of 2024, taking advantage of new accounting regulations. This remarkable performance, announced when the quarterly results are published on January 29, represents more than a quarter of the company's total profit for this period.
Tesla garnered $ 600 million in Bitcoin gains
Tesla announced yesterday, on January 29, an exceptional gain of $ 589 million on its Bitcoin portfolio in the last quarter of 2024, bringing its total value to more than a billion dollars.
This performance results from a new accounting rule adopted by the Financial Accounting Standards Board (FASB) in December 2023. Companies can now enhance their cryptos at market prices in their balance sheets, and no longer only at their purchase price.
Before this change, Tesla could only record the value loss of its bitcoins, without being able to show potential gains. Today, its 9,720 bitcoins are recorded at their true market value, thus more faithfully reflecting the reality of its investment.
This reassessment has greatly contributed to the total benefit of $ 2.3 billion in Tesla in the fourth quarter, thus validating its investment strategy in Bitcoin, which had nevertheless aroused doubts at its beginnings.
Impact on financial results and future prospects
This change in accounting rules marks an important step for Crypto adoption by large companies. The new FASB guidelines finally show the true value of Bitcoin investments in financial balance sheets.
Tesla is not an isolated case. Semler Scientific, Genius Group and Rumble also integrated Bitcoin into their cash strategy. Microstrategy, a pioneer of the sector, remains the leader with 471,000 BTC, valued at $ 48 billion.
Bitcoin gain has largely contributed to the total benefit of $ 2.3 billion in Tesla in the last quarter. However, the overall results from the company disappoint Wall Street, with a turnover up only 2 % to 25.71 billion dollars.
Tesla began investing in Bitcoin in February 2021. Even after sold 75 % of its BTC in 2022, the company retains an important position on the Crypto market. Despite the results below expectations, with a profit per share of $ 0.73 against 0.76 planned, the Tesla share jumped 4.44 % after the fence.
This success with Bitcoin, supported by new accounting rules, could encourage other companies to invest in cryptos. Meanwhile, at least five American states are developing strategic reserve projects, and Texas plans to register its Bitcoin reserve in law from 2025.
Maximize your Cointribne experience with our 'Read to Earn' program! For each article you read, earn points and access exclusive rewards. Sign up now and start accumulating advantages.
