Tesla Bitcoin Holding Sees Explosive Growth, Boosting Q4 Earnings by $600 Million

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Under Trump’s leadership, Bitcoin has found its place in the mainstream financial system, and companies are finding new ways to incorporate it into their financial strategies. Tesla, one of the largest corporate Bitcoin holders, has reported a massive $600 million gain on its holdings in Q4 2024, thanks to a new accounting rule that allows firms to reflect the market value of their crypto assets. 

Tesla’s Bitcoin Value Surges

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. 

Bitcoin Holdings by Category: Who Holds What?

Tesla first bought Bitcoin in 2021, accumulating 42,902 BTC before selling 75% of its holdings in 2022 for $936 million. Other companies, such as Semler Scientific, Genius Group, and Rumble, have adopted Bitcoin as part of their treasury strategy. However, MicroStrategy remains the largest corporate Bitcoin holder, with 471,000 BTC worth around $48 billion.

Now let’s dive into the different categories. Bitcoin’s 21 million total supply, around 1.34 million BTC is held by ETFs, ETFs hold the largest share, followed by governments, public companies, and Private firms, along with BTC mining companies and DeFi platforms. 

Bitcoin Holdings by Category Source : Bitcoin Treasuries

New Rule Changes How Bitcoin Is Recorded

However this new rule by the Financial Accounting Standards Board (FASB), introduced in December 2023, now allows companies to report the market value of their crypto holdings. Before this, firms had to record losses if Bitcoin’s price dropped but couldn’t recognize gains unless they sold the asset. This change provides a more accurate picture of companies’ financial positions and has significantly benefited Tesla. 

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Tesla’s Q4 Earnings Fall Short

Despite the Bitcoin boost, Tesla’s total Q4 revenue came in at $25.71 billion, a 2% increase from last year but below analyst expectations of $27.22 billion. The company also reported earnings per share (EPS) of $0.73, slightly missing the projected $0.76. Operating expenses rose to $2.59 billion, marking a 9% increase from the previous quarter.

After the earnings release, Tesla’s stock (TSLA) dropped by 2.26%. However, after-hours trading saw a rebound of 4.44%, bringing the stock to $406.36. Over the past year, Tesla’s share price has surged 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.