Bitcoin is back — for now.
In February, Tesla bought $1.5 billion worth of bitcoin as an investment and announced that it would accept the digital currency as payment for cars.
That investment seems to be paying off — at least as the market stands right now. Bitcoin has soared to new heights, crossing the $60,000 threshold, making Tesla's treasure chest of 42,902 Bitcoin worth $2.5 billion.
That means Tesla is up $1 billion in its Bitcoin investment, Insider reports — an impressive vindication, at least for now, of the carmaker's decision to go big on cryptocurrency.
Ups and Downs
The value of Bitcoin has been on a real rollercoaster throughout the year, and that's in large part due to Elon Musk's flip-flopping on his stance on the currency. In fact, Tesla was also up $1 billion back in February, according to estimates at the time.
In one puzzling detour, in a May announcement on Twitter Musk cited the environmental devastation associated with Bitcoin mining in his decision to suspend vehicle purchases using the digital currency.
The move prompted a steep dropoff in the value of Bitcoin, enraging Musk's loyal fanbase.
More recently, China's crackdown on cryptocurrency mining and transactions caused Bitcoin to fall again over the summer.
This month, though, the digital currency started rallying, soaring ever-closer to record highs it set back in April. Why remains a mystery, but the resurgence is likely the result of more and more financial institutions becoming interested around the world.
As has always been the case, Tesla's Bitcoin riches may only be fleeting. Cryptocurrencies are infamously volatile and the next crater could only be around the corner.
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