In a filing with the Securities and Exchange Commission on Feb 8, 2021, Tesla said it bought $1.5 billion worth of bitcoin for “more versatility to further diversify and make the most of returns on our cash.”
Tesla likewise stated it will begin accepting payments in bitcoin in exchange for its products “based on suitable laws and initially on a limited basis.” That would make Tesla the very first significant automaker to do so. Once it begins accepting it for payments, the $1.5 billion worth of bitcoin will provide Tesla liquidity in the cryptocurrency.
Tesla’s major move into bitcoin represents a financial investment of a substantial percentage of its money in the investment. The business had more than $19 billion in cash and cash equivalents on hand at the end of 2020, according to its newest filing.
The moves raise questions around CEO Elon Musk’s current habits on Twitter, where he has been credited for increasing the rates of cryptocurrencies like bitcoin and dogecoin by publishing positive messages that have actually encouraged more people to purchase the digital currencies.
A fortnight ago, the Tesla-owner billionaire included the hashtag #bitcoin to his Twitter bio, a move that assisted to briefly push up the rate of the cryptocurrency by as much as 20%. And two days later on, he said on the social media chat website Clubhouse: “I do at this point think bitcoin is a good idea, and I am a supporter of bitcoin.”