Elon Musk

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  • The bitcoin bought by Tesla for $1.5 billion in January is worth $2.5 billion after bitcoin’s rally.

  • The token topped $60,000 briefly because the SEC looks likely to approve bitcoin futures ETFs.

  • Tesla CEO Elon Musk is influential in crypto and his comments have driven volatility in bitcoin’s price.

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Elon Musk’s vow that Tesla will hold onto its billion-dollar-plus investment in bitcoin is paying off as ETF excitement drives the coin’s price to highs not seen since April.

The electric-car maker now holds 42,902 bitcoin, according to Bitcoin Treasuries. It added $1.5 billion worth of the cryptocurrency to its balance sheet in February.

That investment is valued at $2.5 billion on Friday, after bitcoin climbed more than 3%, according to Coinbase data. The price of the token touched $60,000 but has since slipped back to $59,310 – still its highest level in five months.

This is not the first time Tesla’s holding has added $1 billion in worth. Its fair value was almost $2.5 billion in March, the company said in an SEC filing. Overall, the value of Tesla’s crypto investment has tracked the price moves for bitcoin since February.

The token has gained 23% over the past month on hopes the SEC will give the go-ahead for crypto exchange-traded funds. A report Friday that regulators are ready to allow bitcoin futures ETFs to trade next week has boosted the price.

Tesla has sold only 10% of its bitcoin, and that was only to find out whether it was as liquid as cash on a balance sheet, Musk said.

“Tesla will not be selling any bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy,” its CEO Musk said in a tweet in May.

Musk is a crypto influencer whose comments have contributed to volatility in the price of dogecoin and shiba inu as well as bitcoin. The comment indicating Tesla had suspended vehicle purchases in bitcoin was followed by a drop in the token’s price.

Read the original article on Business Insider