Breaking: Tesla Buys $1.5 Million Worth Of Bitcoin

News / 08.02.2021

Less than a week after Elon Musk pumped bitcoin’s price via a Twitter bio update, fresh reports revealed that Tesla has purchased a whopping $1.5 billion worth of bitcoin. 

According to an official SEC filing published today, the Elon Musk-led company stated that it had acquired the digital currency after updating its investment policy to provide it with “more flexibility to diversify further and maximize returns.”

Tesla also added that it has the option of allocating some of its funds into “certain alternative reserve assets,” including “digital assets, gold bullion, gold exchange-traded funds, and other assets as specified in the future.”

Tesla To Accept Bitcoin Payment

In addition to the large bitcoin purchase, The electric car company said it would start accepting bitcoin payments in exchange for its products.

The company said in the filing, “We invested an aggregate $1.50 billion in bitcoin under this policy. 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. We believe our bitcoin holdings are highly liquid. However, digital assets may be subject to volatile market prices, which may be unfavorable at the time when we want or need to liquidate them.”

Tesla’s CEO, Elon Musk, has been making headlines for the past few weeks owing to his tweets about cryptocurrency. From updating his Twitter bio with “#bitcoin,” causing the digital asset to witness a rapid surge, and subsequently removing it, to pumping the meme-inspired cryptocurrency, Dogecoin.

Musk had earlier indicated his interest in purchasing bitcoin in December, when he asked MicroStrategy’s CEO, Michael Saylor, about the possibility of conducting large transactions involving the conversion of Tesla’s balance sheet to bitcoin without adversely affecting the market.

Seeing that Tesla has finally made this large bitcoin purchase, it is quite obvious that bitcoin mainstream adoption is set to happen sooner than expected.

Bitcoin Hits ATH, Crypto Exchanges Suffer

Following the news of Tesla’s bitcoin purchase, the leading cryptocurrency gained over $4,000 in minutes and smashed its previous all-time high (ATH). At the time of writing, bitcoin is trading at $43,500. Analysts believe the cryptocurrency is set to hit the $50,000 mark. 

Amid the news’s excitement, many crypto traders are struggling to access their trading accounts as major exchanges like Binance are facing a system outage. 

Mandy Williams joined the crypto space in 2016, and since then she has been learning and writing about cryptocurrencies and blockchain technology.