Tesla Revalues Bitcoin Holdings Under New Accounting Rules, Reports $600M Gain in Q4

Tesla reported a $600 million gain on its Bitcoin holdings in the fourth quarter after adopting a new accounting rule that allows companies to value digital assets at market prices each quarter.

The electric vehicle maker’s Bitcoin holdings stand at 11,509 BTC, according to Arkham Intelligence data, with its value estimated at $1.19 billion based on current market prices. 

Tesla, however, did not disclose its Bitcoin holdings in its Q4 2024 report, referring only to a $600 million mark-to-market gain on “digital assets.” 

Its gain reflects an accounting adjustment under new reporting rules, which raised Tesla’s reported digital asset value to $1.076 billion from $184 million—the previously impaired value recorded under older accounting rules.

The Financial Accounting Standards Board introduced the new rule update in December 2023, requiring companies to report digital assets at their fair market value rather than at their lowest recorded price since purchase. 

Tesla has adopted the rule early, ahead of the 2025 deadline, which is required for all entities for fiscal years beginning after December 15, 2024.

Previously, Tesla could only report losses if Bitcoin’s price declined but was not allowed to record gains unless the asset was sold. 

Under the new standard, companies can adjust crypto holdings to reflect market movements each quarter, bringing them in line with how stocks and other financial assets are valued.

Tesla reported adjusted earnings-per-share of $0.73, missing Wall Street’s estimate of $0.78, according to TipRanks data.

Despite the missed earnings, Tesla shares are up 4.3% in after-hours trading to $406.25, as investors react positively to the Bitcoin revaluation.

That followed a 2.25% slump in normal trade to $389.10, Google Finance data shows.

With 11,509 BTC, Tesla remains one of the largest publicly traded Bitcoin holders.

Other companies with crypto exposure, such as MicroStrategy and Coinbase, could also see their reported asset values rise under the new accounting rule this year.