Tesla Reports 600 Million Dollar Gain From Bitcoin Holdings Under New Accounting Rules
Tesla has reported a significant increase in its bitcoin holdings value for the fourth quarter of 2025, with the figure rising from $184 million to $1.08 billion following new accounting standards implementation. The company's net income received a $600 million boost due to this change, as stated in their earnings release on Wednesday.
The Financial Accounting Standards Board introduced new rules that require companies to mark their digital asset holdings to market value each quarter starting in early 2025. This represents a major shift from previous standards, where companies had to report bitcoin holdings at their lowest recorded value during ownership, regardless of price increases.
According to Tesla's CFO Vaibhav Taneja, this accounting change resulted in a 68-cent increase in earnings per share for the quarter. The company's bitcoin holdings had a fair market value of $729 million at the end of the third quarter, despite being recorded at $184 million carrying value. The actual increase in holdings value during the fourth quarter was approximately $347 million, reflecting bitcoin's price rise during this period.
The company currently ranks as the sixth-largest holder of bitcoin among public companies, according to Bitcoin Treasuries website. Despite the positive impact of bitcoin holdings on the financial results, Tesla's core business showed some challenges, with auto revenue declining by 8% compared to the previous year.
The digital asset value increase comes at a time when bitcoin prices are rising, partly due to market optimism about the second Trump administration. Tesla's CEO Elon Musk has taken on a role as a top adviser in the White House, while his associate David Sacks has been appointed as the White House AI and crypto czar.
Despite falling short of analysts' expectations for fourth-quarter earnings and revenue, Tesla's stock price increased in after-hours trading. The bitcoin accounting change helped offset some of the company's operational challenges in its main automotive business.
