Bitcoin gains after Tesla renews commitment to cryptocurrency

Bitcoin rose after Tesla Inc. reported a $272 million gain on “digital assets” after its $1.5 billion investment in the cryptocurrency.

The electric vehicle market leader said Monday it generated $101 million in income from the investment, helping it beat analysts’ estimates for profit in the first quarter of the year.

Bitcoin gained as much as 1.9% and traded above $54,000 after Tesla’s chief financial officer reiterated the company’s commitment to the cybercurrency.

“We do believe long-term in the value of Bitcoin,” CFO Zachary Kirkhorn said on the conference call. “It is our intent to hold what we have long-term and continue to accumulate Bitcoin from transactions from our customers as they purchase vehicles.”

Tesla disclosed its purchase of the digital currency earlier this year and also said it would accept it as a form of payment. That surprise announcement helped increase the legitimacy of Bitcoin and spurred a rally in its value.