Tesla Bitcoin Profit Hits $80M as Crypto Prices Climb

Tesla’s Bitcoin profit reached $80 million in the third quarter of the year, driven by rising Bitcoin ￰0￱ company kept its 11,509 BTC, worth about $1.35 billion at the end of September. Interestingly, unlike earlier quarters, Tesla didn’t buy or sell any ￰1￱ Tesla’s Bitcoin Holdings Matter The $80 million Tesla Bitcoin profit might not be huge compared to its total revenue, but it marks a new level of transparency. Tesla’s Q3 filing shows that under new Financial Accounting Standards Board (FASB) rules, companies must report the current market value of their crypto holdings every ￰2￱ this change, firms could only record losses when prices fell and had to wait until they sold assets to show gains.

Now, unrealised profits and losses appear each quarter and give investors a more accurate view of how crypto affects performance. Tesla’s holdings gained value as Bitcoin prices rebounded from earlier lows this ￰3￱ cryptocurrency’s price surge came amid rising institutional interest, positive regulatory signals in the US, and a general recovery across the crypto market. Tesla’s Financial Performance in Q3 Tesla reported $28.1 billion in revenue for the third quarter, beating Wall Street estimates of $26.36 billion. However, its adjusted earnings per share came in at $0.50, which is slightly below the expected $0.54.

The Tesla Bitcoin profit did not factor into adjusted ￰4￱ company’s adjusted EBITDA reached $4.3 billion while cash and equivalents stood at $41.6 billion by the end of ￰5￱ numbers show that Tesla remains financially strong, even with mixed earnings ￰6￱ of Tesla traded around $434 after the ￰7￱ stock saw a mild dip in after-hours trading, as the earnings miss offset the boost from Bitcoin-related ￰8￱ the FASB Rule Change Affects Tesla Bitcoin Profit The new FASB accounting rule is important to Tesla’s Q3 Bitcoin ￰9￱ the previous system, companies valued crypto assets at the lowest market price during a reporting ￰10￱ approach often undervalued holdings and didn’t capture any gains unless they sold their ￰11￱ updated rule now allows Tesla and others to report fair value gains and losses every ￰12￱ makes it easier to see how Bitcoin affects corporate ￰13￱ Tesla, it meant recognising an $80 million increase in value without needing to sell any ￰14￱ change also improves visibility for investors.

Tesla’s balance sheet now shows the true worth of its Bitcoin holdings, not just historical costs. Tesla’s Long-Term Bitcoin Strategy Tesla has been consistent with its Bitcoin strategy since its initial purchase in early ￰15￱ company originally invested $1.5 billion and briefly accepted Bitcoin as payment for its ￰16￱ Elon Musk later paused payments due to environmental concerns over Bitcoin mining. Still, Tesla held onto most of its BTC through market highs and ￰17￱ company’s current 11,509 BTC have been unchanged since ￰18￱ Tesla sold a portion of its holdings that year, it has kept the rest as a strategic ￰19￱ position shows that Tesla views Bitcoin as a long-term asset rather than a short-term ￰20￱ see Tesla’s Bitcoin approach as a sign of ￰21￱ company treats the cryptocurrency as part of its treasury management strategy, which is similar to how firms might hold foreign currency or gold .

Bitcoin’s Market Rise and Corporate Influence Bitcoin’s rise this year has benefited several large companies, not just Tesla. MicroStrategy, for example, reported over $2 billion in unrealised gains this quarter thanks to Bitcoin’s rally. Together, these firms have become examples of how corporations can use digital assets to diversify balance ￰22￱ records billions in unrealised profit |