In Q4 2024, Tesla recorded a $589 million profit from its Bitcoin holdings, thanks to new accounting standards that allow companies to reflect the market value of digital assets in financial reports.

Previously, corporations could only account for losses if Bitcoin’s price dropped, while gains were not recognized until assets were sold. With the updated rules, Tesla’s net profit for the quarter reached $2.3 billion, bringing its total 2024 earnings to $7.1 billion.

Thanks to these changes, Tesla’s Bitcoin holdings surged to $1.076 billion, compared to just $184 million in the previous quarter.

The company did not disclose the exact number of BTC in its latest report. However, data from Arkham Intelligence estimates the company holds 11,509 BTC (~$1.21 billion), consistent with its November 2024 balance.

According to BitcoinTreasuries, Tesla ranks as the sixth-largest corporate Bitcoin holder, with reserves of 9,720 BTC.

Back in February 2021, Tesla invested $1.5 billion in Bitcoin and briefly accepted it as payment for its vehicles before dropping the option. In Q2 2022, the company sold 75% of its BTC for $936 million, realizing a $64 million profit on the transaction.

With Bitcoin prices surging and new accounting rules in place, Tesla has significantly increased its exposure again. The key question now is whether the company will hold for the long term or cash in on further price gains.