Under Donald Trump’s leadership, Bitcoin has solidified its place in mainstream finance, with companies increasingly incorporating it into their financial strategies. Tesla, one of the largest corporate Bitcoin holders, has reported a massive $600 million gain on its Bitcoin holdings for Q4 2024, thanks to a new accounting rule that allows companies to reflect the market value of their crypto assets.
Keep reading to find out how Tesla’s Bitcoin success is changing the game.
Tesla’s financial report for Q4 2024, released on Jan. 29, shows that its Bitcoin holdings are now worth over $1 billion. This is a major jump from the previously recorded $184 million. The company currently holds 9,720 BTC, according to Bitcoin Treasuries.
Tesla first bought Bitcoin in 2021, acquiring 42,902 BTC before selling 75% of its holdings in 2022 for $936 million. Other companies like Semler Scientific, Genius Group, and Rumble have also added Bitcoin to their treasury strategies. However, MicroStrategy remains the largest corporate Bitcoin holder, with 471,000 BTC valued at around $48 billion.
The rise in Tesla’s Bitcoin holdings can be largely attributed to a new rule by the Financial Accounting Standards Board (FASB) introduced in December 2023. This rule allows companies to report the market value of their crypto holdings, which was not possible before.
Under previous rules, firms could only report losses if Bitcoin’s price dropped but couldn’t recognize gains unless they sold the asset. This change gives a clearer picture of a company’s financial health and has significantly benefited Tesla.
Bitcoin is increasingly becoming a key part of many companies’ financial strategies. Of the 21 million total Bitcoin supply, around 1.34 million BTC is held by exchange-traded funds (ETFs), the largest category. Governments, public companies, private firms, Bitcoin mining companies, and DeFi platforms also hold significant amounts of Bitcoin.
Despite the impressive boost from Bitcoin, Tesla’s overall financial performance in Q4 wasn’t as strong. The company posted total revenue of $25.71 billion, a 2% increase from the previous year, but still below analyst expectations of $27.22 billion.
Earnings per share (EPS) came in at $0.73, slightly missing the projected $0.76. Operating expenses increased to $2.59 billion, up 9% from the prior quarter.
Following the earnings release, Tesla’s stock (TSLA) dropped by 2.26%, but after-hours trading saw a 4.44% rebound, bringing the stock price to $406.36. Over the past year, Tesla’s share price has risen by 103.79%, reaching an all-time high of $479 in December.
This massive accumulation by companies is a sign of growing interest in the asset which created a global interest in adding Bitcoin to their mainstream finance to support their economy. Moreover, many US regions have already passed Bitcoin Strategic Reserve plans like Utah and Arizona.
Tesla’s Bitcoin surge is just a glimpse into the future of corporate finance.
MicroStrategy leads with 471,000 BTC (~$48 billion), far surpassing Tesla and other corporate Bitcoin holders.
Tesla holds 9,720 BTC as of Q4 2024.
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