Group 1: Tesla's Financial Performance - Tesla's stock has declined nearly 30% year to date, with disappointing first-quarter results where revenue and earnings per share missed analyst expectations, and automotive revenue fell 20% year on year [1] - Despite these challenges, Tesla's crypto holdings are valued at approximately $1.1 billion, holding 11,509 Bitcoins and not selling any since 2022 [2][8] Group 2: New Accounting Rules Impact - The Financial Accounting Standards Board (FASB) introduced new guidance in 2023 requiring public companies to report the fair value of crypto assets in each reporting period starting December 2024, addressing previous complaints about distorted valuations [3] - The previous historical cost accounting method limited the reported value of crypto holdings to their lowest price unless sold, which negatively impacted companies holding cryptocurrencies [4][5] - With the new rules, Tesla's Bitcoin value increased to over $1 billion in Q4 2024, resulting in a $600 million gain on its balance sheet, which constituted nearly a quarter of its $2.3 billion net income for that quarter [6] Group 3: Corporate Bitcoin Adoption - Tesla remains the fifth largest corporate holder of cryptocurrency, owning about 0.06% of the total 21 million Bitcoins, despite selling 75% of its crypto holdings in Q2 2022 [8] - In Q1 2025, 12 new public companies purchased Bitcoin, bringing the total to 79 companies holding a combined 688,000 Bitcoins, with public companies acquiring over 95,000 Bitcoins in that quarter [9][10] - The shift towards corporate Bitcoin buying is driven by diversification of investments and hedging against inflation and global uncertainties, as evidenced by the significant gains of companies like Strategy, which has increased over 200% since last May [10] Group 4: Conclusion on Tesla and Bitcoin - Tesla's recent earnings report highlighted the benefits of corporate Bitcoin investments, providing a much-needed boost to its income amidst a challenging financial landscape [12]