Tesla (TSLA) of Elon Musk seemed to take advantage of a new accounting rule that allows the possession of digital assets to be marked in the market each quarter.
The company’s quarter -quarter profit report shows its 9,720 bitcoin valued at $ 1,076 billion at the end of 2024. That is above what had been $ 184 million during several previous quarters. Together with that change, Tesla also registered an impulse of Gaap income of $ 600 million in its digital holdings. For perspective, the company had general GAAP income of $ 2.3 billion in the fourth quarter.
A new rule of the Board of Financial Accounting Standards (FASB) requires that the corporate holders of digital assets begin to mark those assets to market each quarter, no later than the first quarter of 2025. Own discretion, which Tesla seems to do.
Before this new rule, the corporate holders of digital assets had to inform those holdings in what was their lowest valuation during the property time.
Tesla in general reported EPS adjusted of $ 0.73 in the fourth quarter, missing estimates of $ 0.76. The gain in his Bitcoin holdings was for Gaap purposes and would have not had any effect on EPS adjusted. The shares are higher by 3.5% in the negotiation after the hours.
Tesla owns 9,720 BTC, according to Bitcoin’s treasure bonds, which makes it the largest sixth company that is quoted in the stock market on keeping Bitcoin in its balance sheet.
