Elon Musk’s Tesla Invests $1.5 Billion in Bitcoin

The company has plans to accept Bitcoin as payment for its products.

Tesla, the electric car company headed by billionaire Elon Musk, has become the first Fortune 500 corporation to get Bitcoin exposure to its balance sheet as it bought $1.5 billion in Bitcoin last month.

The company’s latest filing with the Securities and Exchange Commission (SEC) revealed its position in digital currency.

“In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity…[and]…we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds, and other assets as specified in the future,” the filing stated.

“Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term.”

The car company has further plans to accept payments in Bitcoin for its products.

“Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt,” the filing added.

Bull Run Ahead?

Musk, the richest man on the planet now, is a proponent of Bitcoin and other cryptocurrencies as well. His recent addition of the word ‘Bitcoin’ to his Twitter bio ended up pumping the digital currency by around 25 percent, but he later deleted that.

His recent tweets on Dogecoin, a cryptocurrency based on an internet meme, have skyrocketed the price of the digital currency.

Tesla has become the second corporation to add Bitcoin to its balance sheet, a trend started by the business intelligence company MicroStrategy, which already received a massive return on its Bitcoin investment.

Moreover, the crypto market responded to Tesla’s investment, and Bitcoin is now pushing towards $43,000. Furthermore, many industry proponents are expecting a massive bull run ahead.

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