Tesla Reveals Its Huge Profit In Bitcoin

The automotive manufacturer Tesla reported a substantial gain of $600 million on its bitcoin investments in the fourth quarter of 2024, benefiting from new accounting regulations. This remarkable performance, announced during the quarterly results publication on January 29, represents more than a quarter of the company’s total profit for this period.

Tesla gains $600 million from Bitcoin

Tesla announced yesterday, January 29, an exceptional gain of $589 million on its bitcoin wallet in the last quarter of 2024, bringing its total value to over 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 value their cryptos at market price in their balance sheets, rather than just at their purchase price.

Before this change, Tesla could only record the losses in value of its bitcoins, without being able to show potential gains. Today, its 9,720 bitcoins are accounted at their true market value, thus more accurately reflecting the reality of its investment.

This revaluation has significantly contributed to Tesla’s total profit of $2.3 billion in the fourth quarter, thereby validating its investment strategy in bitcoin, which had raised doubts in its early days.

Impact on financial results and future outlook

This change in accounting rules marks an important step for the crypto adoption by large corporations. The new FASB guidelines finally allow for showing the true value of bitcoin investments in financial statements.

Tesla is not an isolated case. Semler Scientific, Genius Group, and Rumble have also integrated bitcoin into their cash strategy. MicroStrategy, a pioneer in the sector, remains a leader with 471,000 BTC, valued at $48 billion.

The bitcoin gain has largely contributed to Tesla’s total profit of $2.3 billion in the last quarter. However, the overall results of the company disappoint Wall Street, with revenue up only 2 % to $25.71 billion.

Tesla began investing in bitcoin in February 2021. Even after selling 75 % of its BTC in 2022, the company maintains a significant position in the crypto market. Despite results falling short of expectations, with earnings per share of $0.73 against the anticipated $0.76, Tesla’s stock jumped 4.44 % after the close.

This success with bitcoin, supported by the new accounting rules, could encourage other companies to invest in cryptos. Meanwhile, at least five U.S. states are developing strategic reserve projects, and Texas plans to enshrine its bitcoin reserve in law by 2025.