Elon Musk’s Tesla Reports Bitcoin Gain Of $589 Million Following US Accounting Rule Change
Electric vehicle manufacturer Tesla reported a $589 million gain on its Bitcoin holdings in the fourth quarter last year after a change in US accounting rules that allowed companies to record the market value of crypto on their books. Tesla, which was founded by technology billionaire Elon Musk, released its Q4 2024 results yesterday. They show that the company valued its holdings in BTC at more than $1 billion, a substantial increase from the $184 million it logged during previous quarters. New FASB Rule Lets Companies Record Market Value Of Crypto A 2023 Financial Accounting Standards Board (FASB) rule that came into effect around the middle of December 2024 lets companies use the estimated value of their digital asset holdings in their balance sheets. Prior to the new rule, a corporate’s crypto holdings decreased on the books if the digital assets lost value in an accounting period. The recorded value of the assets would then not increase until the company sold the...