Bitcoin Helps Tesla Add Almost $600 Million to Its Profits

Tesla did not buy or sell Bitcoin (BTC) in the fourth quarter of 2024, according to its latest financial report. The document states that the company's BTC holdings were valued at $1.076 billion as of December 31, 2024, which is a sharp rise from the $184 million recorded in previous quarters. The company also reported an unrealized GAAP profit of $600 million from its digital assets, likely due to Bitcoin investments. This contributed to Tesla's total GAAP profit of $2.3 billion for Q4.

GAAP (Generally Accepted Accounting Principles) is a set of rules and standards used in the U.S. to ensure that companies report their financial information accurately and consistently. These rules help investors, regulators, and the public understand a company’s financial health. For example, GAAP dictates how businesses record profits, losses, and asset values.

Analysts at CoinDesk noted that Tesla might have benefited from this new accounting rule, since it allows companies to revalue digital assets based on market prices every quarter. Previously, companies had to report losses when crypto prices fell but could not record gains unless they sold their holdings.

Source: Arkham Intelligence

Tesla did not disclose the exact number of BTC on its account in its latest report. However, official data suggests the company controls 9,720 BTC, while Arkham Intelligence estimates the figure to be 11,509 BTC, worth about $1.20 billion as of time of writing.

Tesla’s History with Bitcoin

Tesla made headlines in February 2021 when it invested $1.5 billion in BTC. Afterwards, the company even briefly accepted crypto as payment for its electric vehicles but later reversed the decision.

By Q2 2022, Tesla sold off 75% of its BTC holdings, bringing in around $936 million in fiat. While the sale generated a $64 million profit, Tesla also reported a paper loss of $140 million due to unfavorable revaluations.

Fast forward to 2024,  Tesla’s Bitcoin holdings surged from $184 million in Q3 to $1.076 billion by year-end, reflecting the cryptocurrency’s rising value. Today, Tesla remains one of key players in the corporate Bitcoin space, ranking as the sixth-largest holder globally, according to BitcoinTreasuries.