As Bitcoin surged nearly 30% in the second quarter, electric vehicle giant Tesla's latest financial report shows that the value of the Bitcoin it holds has surpassed 1.2 billion dollars. This asset rise not only reflects the price increase but is also due to the recent changes in American accounting standards.
According to data from Bitcoin Treasuries, Tesla currently holds 11,509 Bitcoins, ranking 10th among publicly traded companies worldwide in terms of Bitcoin holdings.
As Bitcoin's price rose from 83,000 dollars in early April to about 107,000 dollars by the end of June, Tesla's Bitcoin assets also expanded to 1.235 billion dollars, recording a paper profit (unrealized gain) of 284 million dollars in the second quarter.
According to the latest regulations from the Financial Accounting Standards Board (FASB) in the United States, starting this year, companies must record the 'fair value' of their held cryptocurrencies every quarter, which allows Tesla's financial reports to more accurately reflect the price movements of Bitcoin.
Looking back, Tesla had to recognize significant 'impairment losses' due to the decline in Bitcoin prices, leading to reduced company profits, and could only register asset appreciation in a profitable manner when selling cryptocurrencies. However, with the new accounting standards in place, the gains in cryptocurrencies can finally be accurately reflected in financial reports, allowing investors to better understand the company's actual asset status and potential value.
In terms of operational data, Tesla's revenue reached 22.5 billion dollars in the second quarter, slightly better than the market expectation of 22.3 billion dollars; earnings per share (EPS) reported at 0.40 dollars, in line with analyst forecasts. After the financial report was released, Tesla's stock price slightly rose by 0.71% in after-hours trading, reporting at 331.56 dollars per share.
"Holding 1.2 billion dollars in Bitcoin! Tesla's Q2 Bitcoin paper profit is 284 million dollars" This article was first published on (Block Guest).
