Profits went up by a lot. Not because sales went up but because new accounting rules
Tesla saw a boost in its financial performance in the fourth quarter of 2024, thanks in part to its Bitcoin holdings.
The company reported a $600 million gain due to a change in accounting rules. The move allowed Tesla to value its Bitcoin at market prices.
Tesla Makes $600 Million on Bitcoin
This shift in accounting standards stems from a new rule by the Financial Accounting Standards Board (FASB). The rule mandates that starting in 2025, companies holding digital assets must mark those assets to market each quarter.
The new FASB rule gives companies the option to implement this change earlier, which Tesla appears to have done. Before this rule, companies were required to report their digital assets based on the lowest valuation of those assets during their time of ownership.
Profits went up by a lot. Not because sales went up but because new accounting rules
Tesla saw a boost in its financial performance in the fourth quarter of 2024, thanks in part to its Bitcoin holdings.
The company reported a $600 million gain due to a change in accounting rules. The move allowed Tesla to value its Bitcoin at market prices.
Tesla Makes $600 Million on Bitcoin
This shift in accounting standards stems from a new rule by the Financial Accounting Standards Board (FASB). The rule mandates that starting in 2025, companies holding digital assets must mark those assets to market each quarter.
The new FASB rule gives companies the option to implement this change earlier, which Tesla appears to have done. Before this rule, companies were required to report their digital assets based on the lowest valuation of those assets during their time of ownership.