Tesla buys $1.5 Billion Worth of Bitcoin
Electric-car manufacturer Tesla has according to its SEC filing acquired $1.5 billion worth of Bitcoin. According to reports the company has mentioned that it intends on diversifying its cash reserves by investing in digital assets along with investments in gold and gold ETFs.
Bitcoin’s price saw increased bullishness last week when the CEO of Tesla added #Bitcoin to his Twitter profile. Just by the mention of it, the bearish trend was reversed and BTC was once again sent towards the new ATH $42k. This seems like an interesting move from Musk just a few days prior to Tesla’s whopping investment in BTC.
According to the filing, in January 2021, the company had updated its investment policy and it highlighted how it had moved towards diversifying its portfolio to maximize returns. It noted,
“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. 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.”
At the time of writing, this news has pushed Bitcoin price off the roof, reporting new all-time highs at $43,730.
Elon Musk has not hesitated in showing his support for Bitcoin. After the mention in his Twitter Bio, the CEO appeared in an interview on Clubhouse wherein he stated:
“I do think Bitcoin is a good thing. I’m a supporter of Bitcoin.”
He has also stated that Bitcoin was on the verge of getting broad acceptance by conventional finance. As seen in 2020 and 2021, as BTC price rallied higher, the skeptics have changed their minds and invested in Bitcoin.
According to Bitcoin Treasuries, institutions currently held $39.9 billion worth of Bitcoin with MicroStrategy leading with $3.01 billion.
This is a developing story and more information will be added shortly