Tesla’s Bitcoin holdings grew by $600 million in the fourth quarter after implementing a new accounting rule. The rule allows companies to value digital assets at market prices each quarter.

According to Arkham Intelligence , the electric car maker holds 11,509 BTC, which is worth $1.19 billion at current market prices.

Tesla reported a $600 million gain on Bitcoin sales under the new accounting rules.

The car company did not disclose its Bitcoin holdings in its fourth-quarter 2024 report . Instead, it disclosed a $600 million gain on the market value of “digital assets.” However, Tesla holds 9,720 BTC, according to Bitcoin Treasuries, making it the sixth-largest publicly traded company with Bitcoin on its balance sheet.

The gain is due to an accounting adjustment to comply with new accounting rules that increased the reported value of Tesla’s digital assets to $1.076 billion, compared to a previously reduced value of $184 million under the old accounting methods.

In December 2023, the Financial Accounting Standards Board introduced a new rule update that requires companies to report digital assets at their fair market value, rather than the lowest price at which they were recorded since they were purchased. Tesla adopted the rule in advance of the 2025 deadline, which is a requirement for all entities for fiscal years beginning after December 15, 2024.

Previously, Tesla could only report a loss if the price of Bitcoin declined, but was not allowed to record a profit unless the asset was sold.

Under the new standard, companies must restate the value of their crypto assets based on market value every quarter, just as they do with other financial assets such as stocks.

Tesla reported $2.3 billion in profit in the final three months of 2024. That’s down from $7.9 billion a year earlier, but the 2023 profit included a one-time tax benefit of $5.9 billion. Tesla’s operating profit, excluding that special income, fell 23% in the final three months of the year.

In contrast, sales rose 2% to $25.7 billion in the fourth quarter from $25.2 billion in the same period of 2023.

The company missed Wall Street’s expectations of $0.78 for adjusted earnings per share; it reported $0.73. Still, investors are happy with Bitcoin’s revaluation, and Tesla shares rose 4.3% in after-hours trading to $406.25.

That followed a 2.25% drop in regular trading, which brought Tesla’s share price to $389.10, according to Google Finance . With 11,509 BTC, Tesla remains one of the largest holders of publicly traded Bitcoin.

Some investors are hoping that Musk’s close ties to President Trump will benefit Tesla, such as helping to remove regulatory hurdles for self-driving cars.

Other companies with crypto exposure, including MicroStrategy and Coinbase, could also see their reported holdings rise under the new accounting rule this year.

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