On Monday, Tesla announced that it bought $1.5 billion in Bitcoin.
The company said it bought the bitcoin in a filing with the Securities and Exchange Commission for “more flexibility to further diversify and maximize returns on our cash.” In exchange for its goods, Tesla also said it would start accepting payments in bitcoin “subject to applicable laws and initially on a limited basis.” That would make Tesla the first major automaker to consider cryptocurrencies for payment.
According to its most recent filing, at the end of 2020, the firm had more than $19 billion in cash and cash equivalents on hand.
The recent moves that CEO Elon Musk has been making on Twitter have raised concerns for many; earlier this month, he was credited with raising the prices of cryptocurrencies such as bitcoin and dogecoin, posting encouraging messages that inspired more individuals to purchase digital currencies.
Two weeks ago, the billionaire added the hashtag #bitcoin to his bio on Twitter, which briefly helped drive the cryptocurrency price up by as much as 20%. Shortly after, on the Clubhouse app, he said, “I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin.”
Following Tesla’s announcement, Bitcoin prices soared to a new high, hitting a price of at least $44,200. By Monday morning, Tesla shares had increased by more than 2%. In its SEC filing, Tesla alerted investors of the uncertainty of the bitcoin price.
Discover more from Baller Alert
Subscribe to get the latest posts sent to your email.
