Catenaa, Tuesday, February 04, 2025 – Tesla saw a $600 million paper gain from its bitcoin holdings in the fourth quarter of 2024, aided by a new accounting rule allowing companies to adjust the value of digital assets quarterly based on market prices.
This rule, which took effect in December, is a departure from previous guidelines that limited revaluation unless assets were sold. Tesla’s bitcoin holdings increased to $1.076 billion by the end of Q4, up from $184 million in Q3.
The surge in Tesla’s bitcoin valuation coincided with a more than 50% rise in bitcoin’s price, driven by market optimism surrounding the re-election of US President Donald Trump and robust trading volumes in bitcoin exchange-traded funds. Bitcoin’s price reached a new all-time high during the quarter, fueling gains across the broader cryptocurrency market.
Though Tesla did not disclose the exact amount of bitcoin it held in its Q4 earnings report, data from Arkham Intelligence estimates the company holds approximately 11,509 BTC, valued at $1.21 billion. This positions them as the fourth-largest publicly traded holder of bitcoin.
Despite the gains, Tesla’s stock faced a dip, closing down 2.26% on the day of the report, but later rebounded in after-hours trading. The company posted a net income of $2.3 billion for Q4 and $7.1 billion for 2024, with adjusted earnings per share of $0.73, slightly missing analyst expectations.
