Tesla revealed on Feb 8, 2021 it has made a purchase of $1.5 billion worth of bitcoin.
In a filing with the Securities and Exchange Commission, the business stated it bought the bitcoin for “more versatility to further diversify and maximize returns on our money.”
Tesla likewise said it will begin accepting payments in bitcoin in exchange for its items “subject to appropriate laws and initially on a minimal basis.” That would make Tesla the very first significant car manufacturer to do so. Once it begins accepting it for payments, the $1.5 billion worth of bitcoin will give Tesla liquidity in the cryptocurrency.
Tesla’s relocation into bitcoin represents a financial investment of a considerable percentage of its cash in the financial investment. The company had more than $19 billion in money and cash equivalents on hand at the end of 2020, according to its most recent filing.
The moves raise questions around CEO Elon Musk’s current behavior on Twitter, where he has been credited for increasing the prices of cryptocurrencies like bitcoin and dogecoin by publishing favorable messages that have encouraged more individuals to buy the digital currencies.
Two weeks earlier, the billionaire Tesla-owner added the hashtag #bitcoin to his Twitter bio, a tweak that resulted in the price of the cryptocurrency spiking up by as much as 20%. Then 2 days later, he stated on the social media chat site Clubhouse: “I do at this point believe bitcoin is a good thing, and I am an advocate of bitcoin.”