TLDR
- Tesla reported $600 million in Bitcoin-related gains for Q4 2024, representing 26% of its $2.3 billion net income
- New FASB accounting rules allowed Tesla to mark its Bitcoin holdings at market value, increasing from $184 million to $1.08 billion
- Tesla holds approximately 9,720 BTC according to Bitcoin Treasuries
- Bitcoin reached a new all-time high of $108,000 during this period
- Despite Bitcoin gains, Tesla’s overall Q4 revenue of $25.71 billion missed analyst expectations
Tesla’s fourth-quarter earnings report for 2024 revealed a substantial boost from its Bitcoin holdings, with digital asset gains contributing $600 million to the company’s bottom line. The electric vehicle maker’s cryptocurrency investment accounted for 26% of its total GAAP net income of $2.3 billion for the quarter.
The notable increase stems from changes in accounting standards implemented by the Financial Accounting Standards Board (FASB) in December 2023. Under these new rules, companies can now report their digital assets at fair market value each quarter, rather than the previous requirement of recording them at their lowest value during the holding period.
Tesla’s Bitcoin holdings, which had been consistently reported at $184 million for four consecutive quarters, jumped to approximately $1.08 billion by the end of December 2024. According to data from Bitcoin Treasuries, the company currently holds around 9,720 BTC in its corporate treasury.
The company’s journey with Bitcoin began in 2021 when it initially purchased 42,902 BTC. Tesla later sold 75% of these holdings in 2022 for $936 million, maintaining its current position of 9,720 BTC through the recent market rally.
The fourth quarter of 2024 saw Bitcoin reach unprecedented heights, crossing the $100,000 mark and setting a new all-time high of $108,000. This price surge directly impacted Tesla’s digital asset valuations under the new FASB reporting requirements.
Tesla’s overall financial performance for Q4 2024 showed mixed results. The company reported total revenue of $25.71 billion, representing a 2% increase from the previous year but falling short of analyst expectations of $27.22 billion. Operating expenses rose to $2.59 billion, marking a 9% increase from the prior quarter.
Earnings per share came in at $0.73, slightly below the projected $0.76. The company’s stock performance reflected these results, with TSLA shares initially dropping 2.26% following the earnings release. However, after-hours trading saw a recovery with a 4.44% increase, bringing the stock price to $406.36.
The past year has been generally positive for Tesla’s stock, which has risen by 103.79% and reached its peak of $479 in December 2024. The recent Bitcoin gains have helped offset some challenges in other areas of the business.
Bitcoin Treasuries
Tesla’s Bitcoin holdings make it one of several major corporations incorporating cryptocurrency into their treasury strategies. Other companies like Semler Scientific, Genius Group, and Rumble have also added Bitcoin to their balance sheets, though MicroStrategy remains the largest corporate holder with 471,000 BTC valued at approximately $48 billion.
The distribution of Bitcoin holdings across different categories shows exchange-traded funds (ETFs) as the largest holders, controlling approximately 1.34 million BTC of the total 21 million supply. Various entities including governments, public companies, private firms, mining companies, and DeFi platforms make up the remaining institutional holders.
The FASB’s rule change has made it easier for companies to accurately reflect their digital asset holdings in financial statements. This accounting update allows for better transparency in corporate Bitcoin holdings and their impact on quarterly results.
Tesla’s financial report demonstrates the material effect these accounting changes can have on corporate earnings. The ability to mark digital assets to market value provides a more current picture of a company’s financial position regarding cryptocurrency investments.
The Q4 results highlight how Bitcoin’s price movements can affect corporate balance sheets under the new reporting standards. The cryptocurrency’s rise above $100,000 directly translated into improved financial metrics for Tesla.
Several U.S. regions have moved forward with Bitcoin strategic reserve plans, including Utah and Arizona, indicating growing institutional acceptance of the digital asset. This trend aligns with the broader corporate adoption of Bitcoin as a treasury asset.
Data from Bitcoin Treasuries continues to track corporate Bitcoin holdings, providing transparency into institutional ownership of the digital asset. Tesla’s position represents a notable portion of publicly traded company Bitcoin holdings.
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