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Stevenson further examined the implications of Tesla's accounting treatment of digital assets, specifically Bitcoin. Under the new accounting treatment, the company is required to use a mark-to-market approach, valuing its Bitcoin holdings at their market price at the end of the fiscal quarter. Previously, if the price of Bitcoin dipped, Tesla had to record the lower value as its cost basis. The current method allows for a more accurate representation of Tesla's position concerning its cryptocurrency investments.
Despite fluctuations in the cryptocurrency market, Tesla reported a gain of $589 million from its Bitcoin holdings, even though it hasn’t sold any of its crypto assets.