Tesla is the fifth largest corporate Bitcoin investor with over 11,500 coins.
More public companies own Bitcoin more than ever before.
Changes to reporting rules have made crypto investments more attractive for businesses.
Tesla (NASDAQ: TSLA) This year has started off in a tough time. Its inventory is down almost 30% a year, and it’s frankly the polite words used on the results of the first quarter. Its revenue and earnings per share missed analysts’ expectations, and its automotive revenue fell 20% year-on-year.
However, there have been many reports about Tesla’s troubles. If you’re a crypto investor, there are people who have not reported reports to watch out for Tesla’s recent earnings. That crypto holding is currently worth around $1.1 billion. Holds 11,509 bitcoins (Cryptography: BTC) And it hasn’t been sold since 2022.
At the end of last year, the Crypto Stash balance sheet values were shot dramatically due to changes in accounting rules. And that rule change is more appropriate for adopting cryptocurrency.
The Financial Accounting Standards Board (FASB) issued new guidance in 2023 after investors complained that the old rules had distorted the value of digital asset holdings. As of December 2024, public companies are required to report the fair value of their crypto assets held during each reporting period.
That’s a big change. The old rules applied what was called historical cost accounting (a very conservative way of attributing value) to digital assets. This disability company holds a code. This meant that unless a public company sold it, it had to list crypto holdings at the lowest price on its balance sheet. The value of a crypto-holding initially reflects the purchase price and is written down if the price drops. However, the values could only be lowered – the subsequent recovery made no difference.
For example, Tesla bought Bitcoin in early 2021 for around $30,000 per coin. At the end of 2022, Bitcoin prices fell below $16,000. For quite some time, it was packed with Tesla’s balance sheet at $15,987. Tesla has listed Bitcoin Stash to a stable amount of $184 million for each quarterly report from December 2022 to December 2024. Prices have risen considerably, but Tesla’s revenues only showed that low.
It changed in the fourth quarter of 2024 when Tesla applied the new rules and the value of the coin jumped to over $1 billion. It recorded a profit of $600 million on the balance sheet. That’s almost a quarter of $2.3 billion in net profit for the quarter.
Tesla and Bitcoin? it’s complicated. In early 2021, Tesla said it would buy its first Bitcoin and accept Bitcoin payments. It was one of the first big companies to really commit to crypto, and then Bitcoin prices have skyrocketed to new highs. A few months later, CEO Elon Musk has stepped back, saying Tesla will halt its Bitcoin payments due to environmental concerns.
The story continues