Tesla Buys $1.5B In Bitcoin And Says It Will Accept Crypto Currency For Selling Its Cars
Tesla has announced the purchase of $1.5B in bitcoin, a move that saw the cryptocurrency bounds to a new all-time high that approached $44,000.
The move was announced via an SEC filing with Tesla also saying that it intends to accept bitcoin as a payment method for products and services at some point in the future.
In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future. 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.
Bitcoin is notoriously volatile and while the $44,000 price is impressive there’s no telling where that price will go next.
It’s just as likely to half in price as it is to double, although the weight of Musk and Tesla behind it won’t do the cryptocurrency any harm at all.
I’ll tell you one thing, I’m never turning down getting paid in bitcoin again.