Tesla revealed on Feb 8, 2021 that it has purchased $1.5 billion worth of bitcoin.
In a filing with the Securities and Exchange Commission, the business said it purchased the bitcoin for “more flexibility to further diversify and optimize returns on our cash.”
Tesla also stated it will start accepting payments in bitcoin in exchange for its items “subject to suitable laws and at first on a minimal basis.” That would make Tesla the first major automaker to do so. Once it begins accepting it for payments, the $1.5 billion worth of bitcoin will offer Tesla liquidity in the cryptocurrency.
Tesla’s move into bitcoin represents a financial investment of a substantial portion of its cash in the financial investment. The company had more than $19 billion in cash and cash equivalents on hand at the end of 2020, according to its newest filing.
The relocations raise questions around CEO Elon Musk’s recent behavior on Twitter, where he has actually been credited for increasing the prices of cryptocurrencies like bitcoin and dogecoin by publishing favorable messages that have effectively motivated more people to buy the digital currencies.
Some 2 weeks ago, the billionaire Tesla CEO included the hashtag #bitcoin to his Twitter bio, a move that helped to briefly raise the price of the cryptocurrency by as much as 20%. And 2 days later, he said on the social media chat site Clubhouse: “I do at this point believe bitcoin is an advantage, and I am an advocate of bitcoin.”
