Tesla’s recommencing commitment to cryptocurrency helps Bitcoin regain

After Tesla’s chief financial officer renewed commitment to the cryptocurrency, Bitcoin traded over $54,000. It gained as much as 1.9%. On Monday Tesla said that from investment the company generated $101 million in income. This aided them to beat estimates by analysts for profit in the first four months of the year.

Bitcoin gained after Tesla Inc. reported a profit of $272 million on “digital assets”, upon its investment of $1.5 billion in the cryptocurrency.

CFO Zachary Kirkhorn said on a conference call that they do believe in the long-term value of Bitcoin. He further added that it is their intent to hold what we have long-term and continue to collect Bitcoin from transactions from their customers as they buy vehicles.

The company revealed its purchase of digital currency earlier this year. It also said that Tesla would accept it as a form of payment. That surprise announcement boosted the legitimacy of Bitcoin and encouraged a rally in its value.

According to Elon Musk, Tesla Inc. sold 10 percent of the company’s Bitcoin holdings to represent the token’s liquidity. He also added that he has preserved his personal investment in cryptocurrency.

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