- Tesla reports a $600 million gain from its Bitcoin holdings.
- Despite getting a hike from its Bitcoin holding Tesla missed analysts’ expectations.
Elon Musk’s Tesla (TSLA) reported a strong gain of $600 million and took benefit of a new accounting rule that allows firms to showcase the market value of their crypto assets.
Tesla recently released its Q4 results, which showcased $600 million in profits via its Bitcoin holdings. As per Bitcoin Treasuries, the company’s Bitcoin holdings now have a value of over $1 million and it holds $9,720 BTC. Before the new rule was introduced, companies had to report their crypto holdings at the lowest value registered during their ownership, despite any price gains.
On this, CFO Vaibhav Taneja noticed an increased EPS of 68 cents in this quarter. Taneja stated,
“It’s important to point out that the net income in Q4 was impacted by a $600 million mark-to-market benefit from bitcoin due to the adoption of a new accounting standard for digital assets.”
Despite Bitcoin Boost Tesla Missed Analyst’s Expectations
Despite getting a boost from Bitcoin holding Tesla missed the analyst expectations of $27.22 billion. It reported a revenue of $25.71 billion and Earnings Per Share (EPS) of $0.73. Moreover, the operating expenses spiked by $2.59 billion, compared to the last quarter.
After the result, the Tesla stock price down by almost 2.26%. However, later it bounced back to 4.4%. Currently, TSLA stock price stands at $389.10, with a market cap of $1,249.0 billion.
As Bitcoin price is reaching new heights global shifts have seen in its adoption. Now corporations are adopting Bitcoin as a store value to boost their earnings and governments to boost their economies. The US, the world’s largest economy, is planning to establish its Bitcoin Strategic Reserve soon.
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