Tesla in the Q4 2024 Earnings Call announced that the company will additional profit of 600 million US dollars from its Bitcoin holdings has realized. The reason for this is a new accounting rule of the Financial Accounting Standards Board (FASB)which allows companies to disclose their crypto holdings at market value on a quarterly basis. at market value.
Why did Tesla suddenly higher Bitcoin profits?
Until now, companies have had to Bitcoin holdings at the lowest value ever recorded. even if the market price later rose again. Thanks to the new FASB rule can Tesla now the actual market gains in its financial reports.
Tesla reported in Q3 2024 Bitcoin holdings worth 184 million US dollars. However, the actual market value was around 730 million US dollars.
CFO Vaibhav Tenja explained during the earnings call:
"Fourth quarter net income was impacted by a $600 million mark-to-market gain from bitcoin as we adopted a new accounting rule for digital assets."
Bitcoin boom after US election drives Tesla's profits
Since the re-election of Donald Trump in November 2024 the Bitcoin price has risen by 51 % increase - from 68,000 US dollars on election day to currently 105,023 US dollars per BTC.
Tesla continues to hold a significant amount of Bitcoin following earlier sales. Already 2021, the company invested 1.5 billion US dollars in cryptocurrencies and is still keeping the option open, to acquire further digital assets in the future.
Tesla and crypto: a strategic decision?
✔ Long-term strategy: Tesla has already announced its intention to use Bitcoin as an investment in 2021.
✔ Dynamic crypto engagement: 2022 sold Tesla 75% of its BTC holdingsbut left a larger sum in the portfolio.
✔ Future prospects: With the new FASB rule Tesla in the future regularly recognize gains from crypto holdings.
Conclusion: Bitcoin is becoming a lucrative source of income for Tesla
The new accounting rules mean that Tesla the better reflect the actual market value of its Bitcoin holdings. In combination with the rapid crypto rise since November 2024 this could play an even bigger role in Tesla's financial results in the future.
The question remains whether Tesla in the coming quarters further expand its Bitcoin strategy or realize profits againin order to concentrate on its core business.
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Tesla, Tesla Model Y, Tesla Model 3, Tesla Accessories, Tesla Store, Shop4Tesla, Tesla News, Bitcoin, Tesla Bitcoin, Tesla cryptocurrencies, Tesla finance, Tesla Earnings Call, Tesla crypto strategy, Elon Musk, Tesla FASB rule, Bitcoin price 2025
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