Tesla's stock surged by 8% in after-hours trading following reports that its Bitcoin holdings exceeded $1 billion. The electric vehicle company currently holds 11,509 BTC, which has appreciated significantly in value, aligning with Bitcoin reaching an all-time high of $89,560. This increase doubles the value of Tesla's Bitcoin investments made in early 2021, which were intended to diversify cash assets. Recent market conditions have driven Bitcoin's market capitalization to $1.75 trillion amid heightened institutional interest, especially following the pro-crypto stance of re-elected President Donald Trump. Despite Tesla moving its Bitcoin into new wallets last month, analysts suggest this was a routine operation rather than an intent to liquidate. Simultaneously, MicroStrategy has continued to aggressively accumulate Bitcoin, increasing its treasury to 279,420 BTC, reflecting a differing strategy compared to Tesla's cautious approach. Overall, the combination of soaring crypto prices and market optimism has significantly benefited Tesla's market capitalization and CEO Elon Musk's personal wealth.

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