Tesla Benefits From New Accounting Rule For Digital Asset #Bitcoin holdings. 👍

According to CoinDesk, Tesla has leveraged a new accounting rule that allows digital assets to be marked-to-market each quarter. The company's fourth-quarter earnings report reveals that its 9,720 #bitcoins were valued at $1.076 billion by the end of 2024, a significant increase from the previous valuation of $184 million over several quarters. 

This adjustment contributed to a $600 million boost in Tesla's GAAP income from its digital holdings, compared to an overall GAAP income of $2.3 billion for the quarter.

The Financial Accounting Standards Board (FASB) introduced a rule requiring corporate holders of digital assets to mark these assets to market each quarter, effective no later than the first quarter of 2025.

Companies, however, have the discretion to adopt this rule earlier, as Tesla has done. Previously, digital asset holdings were reported at their lowest valuation during the ownership period.
#Bitcoin