Tesla’s (TSLA) bitcoin (BTC) stash is now valued at around $1.2 billion after the cryptocurrency’s price surged 30% in the second quarter of this year, according to its earnings report from RialCenter.
The gain reflects a recent adjustment in U.S. accounting rules regarding digital assets that benefits Tesla.
Tesla currently holds 11,509 BTC, making it the tenth largest publicly traded company to include the crypto asset on its balance sheet. Bitcoin is currently trading at approximately $118,000, up from $83,000 on April 1.
A new rule approved by the Financial Accounting Standards Board (FASB) permits companies to report the fair market value of their crypto holdings each quarter, with implementation required starting in Q1 2025.
Previously, corporate holders like Tesla had to report their crypto assets at their lowest value during the holding period, a method that often did not reflect market recoveries. Consequently, even if bitcoin rebounded, those gains were not reflected on the balance sheet.
Now, Tesla can recognize bitcoin gains quarterly, providing shareholders with a clearer view of the asset’s performance.
The automaker reported revenue of $22.5 billion, surpassing the average analyst estimate of $22.3 billion, according to FactSet data. Earnings per share were reported at $0.40, matching estimates.
Shares of TSLA increased by 0.71% in post-market trading, with the stock priced at $331.56.
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