Munzir HakimiTable of Contents
Fresh Insights
Tesla’s Bitcoin Gains
Tesla reported a $600 million gain from its Bitcoin holdings in Q4 2024, thanks too new accounting rules. The company valued its Bitcoin stash at over $1 billion, significantly up from previous quarters.This increase reflects a net gain of $589 million on its 9,720 BTC holdings.
The recent change by the Financial Accounting Standards board allows companies to record the market value of crypto assets on thier balance sheets. Previously, firms could only recognize losses but not gains until assets were sold.
Despite this boost from Bitcoin, Tesla’s overall earnings fell short of Wall Street expectations with total revenues at $25.71 billion, slightly below estimates.
market Reactions and Future Outlook
Following the earnings report, Tesla’s stock initially dropped by 2.26% but rebounded with a 4.44% rally after hours trading at $406.36 per share. Over the past year, Tesla’s share price has surged by nearly 104%, reaching an all-time high in December.
Tesla first ventured into cryptocurrency in February 2021 and previously held over 42,902 BTC before selling off a critically important portion in July 2022 for $936 million.
Final Thoughts
Key Takeaways
- New accounting rules have positively impacted how companies like Tesla report crypto gains.
- Despite missing revenue targets, strong performance in Bitcoin investments showcases potential for future growth.
