Tesla reports a significant surge in the value of its Bitcoin holdings in Q4 2024, aided by changes in accounting practices.
Tesla's Bitcoin Value Surge
In its Q4 2024 financial report, Tesla revealed that its Bitcoin holdings are now valued at over $1 billion, a major increase from the previously recorded $184 million. The company currently owns 9,720 BTC, according to Bitcoin Treasuries.
Bitcoin Holdings by Category
Tesla first acquired Bitcoin in 2021, accumulating 42,902 BTC before selling 75% of its holdings in 2022 for $936 million. Other companies, such as Semler Scientific and Genius Group, also incorporate Bitcoin into their financial strategies. However, MicroStrategy remains the largest corporate Bitcoin holder with 471,000 BTC, valued at approximately $48 billion.
FASB's New Accounting Rule
The Financial Accounting Standards Board (FASB) introduced a new rule in December 2023 that allows companies to report the market value of their crypto holdings. Previously, firms had to record losses if Bitcoin's price dropped but couldn't recognize gains unless they sold the asset. This change provides a more accurate picture of companies' financial positions and has significantly benefited Tesla.
The new accounting rules provide companies like Tesla the opportunity to accurately reflect the market value of their cryptocurrency holdings, sparking interest in Bitcoin as part of corporate financial strategies.
