Tesla (TSLA) has marked up the valuation of its 9,720 BTC holdings to $1.076 billion in its latest earnings report, taking advantage of new accounting standards that allow companies to mark-to-market their digital assets quarterly.

Texas Lieutenant Governor Dan Patrick has officially included a Texas Bitcoin Reserve in the state's 2025 legislative priorities, setting the stage for Texas to adopt BTC as a strategic asset.

Bitcoin surged over 4.5% to $105,000, extending its biggest jump in over a week after Federal Reserve Chair Jerome Powell made neutral-to-positive remarks about crypto regulation during the Fed’s latest policy meeting.

Top stories in the Crypto Roundup today:

• Tesla Marks Up Bitcoin Holdings as New Accounting Rule Takes Effect
• Texas Lt. Governor Announces Bitcoin Reserve as 2025 Legislative Priority
• Bitcoin Rallies as Federal Reserve Chair Hints at Crypto Regulation

Tesla Marks Up Bitcoin Holdings as New Accounting Rule Takes Effect

Tesla (TSLA) has marked up the valuation of its 9,720 BTC holdings to $1.076 billion in its latest earnings report, taking advantage of new accounting standards that allow companies to mark-to-market their digital assets quarterly. Previously, corporate holders of Bitcoin were required to report their holdings at the lowest valuation recorded during ownership, which had left Tesla’s Bitcoin position stuck at $184 million for several quarters.

The Financial Accounting Standards Board (FASB) introduced the new rule in late 2024, with full implementation required by Q1 2025. However, Tesla appears to have adopted the standard early, leading to a $600 million boost to its GAAP income in Q4. The company reported an overall GAAP income of $2.3 billion for the quarter, meaning Bitcoin holdings accounted for over a quarter of its reported profits.

Despite an earnings miss, Tesla’s stock rose 3.5% in after-hours trading as investors responded positively to the updated Bitcoin valuation. Tesla remains the sixth-largest publicly traded company holding Bitcoin, according to Bitcoin Treasuries.

Texas Lt. Governor Announces Bitcoin Reserve as 2025 Legislative Priority

Texas Lieutenant Governor Dan Patrick has officially included a Texas Bitcoin Reserve in the state's 2025 legislative priorities, setting the stage for Texas to adopt BTC as a strategic asset.

The push for a state-backed Bitcoin reserve has gained traction, with state Senator Charles Schwertner and Representative Giovanni Capriglione both introducing legislation to allow fees, taxes, and contributions to be paid in Bitcoin, which could then be used to build the reserve. Schwertner argued that the initiative would position Texas at the forefront of the digital economy and further strengthen its status as a crypto-friendly state.

Texas joins Arizona, Utah, and at least three other U.S. states working on similar legislative efforts to integrate Bitcoin into state finances. The move comes as Wyoming Senator Cynthia Lummis pushes the BITCOIN Act, a federal initiative aimed at establishing a national strategic Bitcoin reserve.

As the eighth-largest economy in the world (if considered a sovereign nation), Texas’ potential Bitcoin adoption could set a precedent for other states and institutions. The Lone Star State is already a major hub for Bitcoin mining, thanks to its low-cost energy and favourable regulations, making it a natural candidate for integrating Bitcoin into government reserves.

Bitcoin Rallies as Federal Reserve Chair Hints at Crypto Regulation

Bitcoin surged over 4.5% to $105,000, extending its biggest jump in over a week after Federal Reserve Chair Jerome Powell made neutral-to-positive remarks about crypto regulation during the Fed’s latest policy meeting.

Powell reaffirmed that banks are "perfectly able to serve crypto customers" provided they manage the associated risks, but he also noted that a "greater regulatory framework around crypto" from Congress would be "very constructive". His comments follow growing speculation about pro-crypto policies under President Donald Trump, who has expressed support for a national Bitcoin reserve and surrounds himself with crypto-friendly advisors.

Bitcoin’s recent rally has closely followed U.S. equity market movements, particularly Nasdaq 100 futures, as investors anticipate institutional expansion into digital assets. Meanwhile, CME Group is launching Bitcoin and Ether futures on Robinhood, and firms are increasingly submitting ETF proposals—including applications for memecoin ETFs.

After peaking at $109,241 following Trump’s inauguration, Bitcoin pulled back but remains up over 50% since November.

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