Tesla's fourth-quarter net income saw a significant boost due to a change in how companies account for their digital asset holdings. The new accounting standard, which requires marking digital assets to market each quarter, led to a surge in reported value. This resulted in a $600 million increase in net income for Tesla, primarily attributed to the rise in Bitcoin's value.
Tesla 's net income was boosted by a recent change in how companies account for their holdings of digital currencies.
After showing a carrying value of $184 million in digital assets for the prior four quarters, the number suddenly jumped to $1.08 billion in the December period, Tesla reported in its, which mandates that corporate digital asset holdings be marked to market each quarter starting at the beginning of 2025. Before the FASB rule change, companies owning bitcoin had to report their holdings at the lowest value recorded during their ownership, regardless of any subsequent price gain.
TESLA BITCOIN ACCOUNTING DIGITAL ASSETS NET INCOME
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