New accounting rules shed some light on the profitability of electric vehicle manufacturer Tesla's Bitcoin (BTC) investment.

Tesla overall reported adjusted EPS of $0.73 in the fourth quarter, missing estimates for $0.76. The gain on its bitcoin holdings was for GAAP purposes and would have had no effect on adjusted EPS. Shares are higher by 3.5% in after hours trading.

The automotive company did not disclose its Bitcoin holdings in its Q4 2024 report. Instead, it disclosed a $600 million mark-to-market gain on “digital assets.” Still, according to Bitcoin Treasuries, Tesla holds 9,720 BTC, making it the sixth-largest publicly traded company with Bitcoin on its balance sheet.

Vaibhav Taneja acknowledged Tesla’s benefit from its Bitcoin holdings during the company’s Q4 2024 earnings call. CEO Elon Musk is a known proponent of cryptocurrency, so it doesn’t come as a shock that Tesla was holding on to a large chunk of Bitcoin.

The gain reflects a new accounting adjustment, lifting Tesla’s reported digital asset value to $1.076 billion from $184 million.

Tesla reported a substantial increase in the value of its Bitcoin holdings, surpassing $1 billion in Q4, reflecting a $600 million gain.

Tesla CFO Vaibhav Taneja noted that the automaker’s net income in Q4 was “impacted by a $600 million market benefit from bitcoin due to the adoption of a new accounting standard for digital assets.” He said that Tesla would adjust its other income in future reporting periods going forward.

Tesla has reported a $600 million boost in its latest quarterly results, thanks to a recent change in accounting rules for digital assets.

Tesla’s bottom line numbers were boosted by a $600 million one-time gain in “digital assets.” That added 20 cents a share in bottom-line earnings. Excluding that, EPS would have been closer to 55 cents,

Tesla’s Bitcoin holdings surged in value, climbing from a carrying value of $184 million to a fair market value of $1.08 billion. The company is

Electric vehicle manufacturer Tesla reported a $589 million gain from its Bitcoin holdings after an accounting rule change in the US.