Tesla Reports $1.076 Billion Bitcoin Valuation and $600 Million Gain
Tesla (TSLA) utilized a new accounting rule allowing digital asset holdings to be marked-to-market quarterly. Key points include:
- Tesla's fourth quarter earnings report shows its 9,720 bitcoin valued at $1.076 billion.
- This valuation increased from $184 million in previous quarters.
- The company recorded a GAAP income boost of $600 million from digital holdings, contributing to overall GAAP income of $2.3 billion.
- The Financial Accounting Standards Board (FASB) requires marking digital assets to market by Q1 2025, with early adoption permitted.
- Previously, companies reported digital assets at their lowest value during ownership.
- Tesla's adjusted EPS was $0.73, below the estimated $0.76; gains from bitcoin did not impact adjusted EPS.
- Tesla remains the sixth largest publicly traded company holding bitcoin.
Shares rose by 3.5% in after-hours trading.