Tesla profits receive $ 600 million Bitcoin Boost thanks to changing the base of encryption accounting

Bitcoin price and Tesla shares both Rise Since President Donald Trump won an election in November. At the same time, thanks to accounting ChangingThe height of the digital currency presented a boost to the final result of the manufacturer of electric cars.

Digital assets in Tesla carried $ 184 million on the company’s public budget since the end of 2022, but this number jumped to $ 1.08 billion when I informed Elon Musk. Profits Wednesday. This is the surprise increase to the fact that the new rules of accounting in December Public budgetWith the changes that are reflected in net income at the end of each period.

In the past, the encryption can only be distinguished, not the matter, which means that the gains will only appear in financial data after selling digital assets.

“It is important to note that net income in the quarter was affected by the use of a mark to $ 600 million in bitcoin due to the adoption of a new accounting standard for digital assets”, Tesla Cfo Vaibhav Taneja He said Analysts in the company’s profit call.

A look at the notes from Tesla Financial data Provides more clarification. If it is evaluated at a fair market value, Tesla’s Crypto Holdings was registered for $ 487 million at the beginning of 2024, and not the number “less expensive” of $ 184 million. Bitcoin’s huge boom has made unrealized gains of $ 589 million for this year, adding up to $ 1.076 billion for digital assets in the public budget.

Like approximately 9 % of Tesla $ 7.1 billion in Profits For 2024, according to what is determined by the principles of acceptable accounting in general, or the principles of acceptable accounting in general, the standard adopted by the Securities and Exchange Committee, but not numbers and Wall Street analysts usually use to explain performance.

Bitcoin has jump More than 50 % since Trump’s victory in November, with the digital currency currently near the $ 106,000 brand thanks to the new administration Embrace From encryption. The value of the Crypto Holdings from Tesla was $ 754 million at the end of September, according to the Blockchain analysis platform Arkham intelligenceThis means that the value of Bitcoin in Tesla is estimated at $ 320 million thanks to the fourth quarter of the digital currency.

Tesla initially bought $ 1.5 billion in Bitcoin in 2021. Musk, a Popular fan From Memecoin Dogecoin, he expected the company to help increase the returns to cash and help it accept encryption payments for its vehicles.

Company transformation However, its strategy in 2022, which led to the dismantling of most bitcoin at an average price of about 20,000 dollars, or approximately $ 18,000 less than the price it originally paid. The original Tesla investment of 4,200 BTC will be about $ 4.5 billion today.

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