Tesla gains $600M from Bitcoin accounting change

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Tesla gains $600M from Bitcoin accounting change

The latest financial performance of Tesla increased by $600 million after the FASB modified its digital asset reporting standards. Financial Accounting Standards Board (FASB) introduced revised recommendations during December 2024 which made it possible for corporations to monitor cryptocurrency holdings by applying fair market value during quarterly reporting. Corporations needed to present these tangible assets at their original acquisition value until an actual sale happened by which point the earnings were recognized.

The adjustment in accounting procedures allowed Tesla to bring the value of its Bitcoin assets from $184 million to more than $1 billion which demonstrated substantial market growth of cryptocurrency. The quarter-over-quarter net income rise amounted to 34% and reached $2.3 billion for Tesla.

In the beginning of 2021 Tesla usedits initial $1.5 billion Bitcoin investment as foundation but proceeded to dispose of part of this cryptocurrency value. The recent accounting reform has enabled Tesla to present its remaining bitcoin assets at their modern market worth.

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