Key Takeaways Tesla earlier this week reported a $600 million profit associated with its bitcoin holdings, which accounted for a little more than a quarter of its fourth-quarter profits.The company was able to book these bitcoin-derived profits thanks to a change in Financial Accounting Standards Board guidelines for crypto assets.

Tesla overall reported adjusted EPS of $0.73 in the fourth quarter, missing estimates for $0.76. The gain on its bitcoin holdings was for GAAP purposes and would have had no effect on adjusted EPS. Shares are higher by 3.5% in after hours trading.

Tesla Inc (NASDAQ: TSLA) attributed a significant increase in its quarterly net earnings last night to its bitcoin holdings. The company recorded $1.08 billion as the carrying value of its bitcoin holdings in its fourth-quarter release – up sharply from $184 million at the end of Q3.