Tesla records $1B in unrealized Bitcoin profit as price touched $58K

TL;DR Breakdown:

• Tesla gained about $1 billion in unrealized profit on its Bitcoin holding following the recent surge in price.
• More than 93% of Bitcoin supply is also in profit.  

Hours ago, the price of Bitcoin reclimbed to $58,000, raising more percentage of the supply in profit, including the Elon Musk’ Tesla holding. For the record, it’s been about 157 days since Bitcoin was seen trading around the $58,000 level. 

Tesla at $1 billion profit

Following the increase in Bitcoin price, Tesla’s Bitcoin holding (43,200 BTC) spiked to over $2.5 billion, meaning the company’s investment has gone up by over 66 percent, an equivalent of $1 billion in profit. The electric car maker initially bought 48,000 BTC in February for an estimated cost of $1.5 billion. 

However, it sold about 10 percent of holding down to 43,200 BTC in the second quarter of this year, with the founder saying the move was to test Bitcoin’s liquidity as an alternative to cash. They reported a net profit of $128 million from the sale. Although the company has suspended accepting payments in Bitcoin, Elon Musk has said they will continue to hold their Bitcoin.

93% of Bitcoin supply is in profit

Apparently, Tesla is not the only Bitcoin holder in profit. By dint of the increase to $58,000, a significant number of Bitcoin in circulation went into profit, according to an on-chain analytics platform, Glassnode. At the moment, more than 93 percent of Bitcoin supply is in profit, which represents a five-month high. 

The number increases in accordance with the growth in Bitcoin’s value. There are predictions that the largest crypto asset will cross a milestone of $100,000 per coin towards the end of the year, and there are many on-chain metrics backing this speculation, such as the declining exchanges’ balance, traces of whale accumulation, etc. 

At the time of publication, however, the crypto was trading at $57,333 on CoinMarketCap, with a market valuation of over $1 trillion.