Tesla just bought $ 1.5 billion worth of Bitcoin, which is driving the price of the cryptocurrency to an all-time high.
Today, February 8, it was announced that the automaker has bought more than $ 1 billion worth of cryptocurrency.
Part of Tesla’s SEC filing reads, “In January 2021, we updated our investment policy to give us more flexibility to further diversify and maximize the returns on our cash that are not required to maintain adequate operating liquidity.”
As part of the policy, duly approved by the Audit Committee of our Board of Directors, we may invest a portion of this cash in certain alternative currency reserves, including digital assets, gold bars, exchange traded gold funds, and other assets as specified in the future. Thereafter, we have invested a total of $ 1.50 billion in Bitcoin under this policy and may acquire and hold digital assets from time to time or over the long term.
The filing also states that the company is considering accepting Bitcoin as a means of payment for its products in the “near future”.
Bitcoin price hit a record high of $ 43,000 after Tesla’s investment, the AFP news agency reported.
The Musk-founded company is following in the footsteps of MicroStrategy, a company that provides business intelligence, mobile software and cloud-based services, Mashable said.
In December 2020, MicroStrategy founder Michael Saylor Musk tweeted with Bitcoin advice. He wrote to the tech mogul, “If you want to do your shareholders a $ 100 billion favor, convert the TSLA balance sheet from USD to #BTC. Other companies in the S&P 500 would follow suit, and in time it would turn into a $ 1 trillion favor. ‘
When asked by Musk whether such large transactions are even possible, Saylor replied, “Yes. I’ve bought over $ 1.3 billion in #BTC in the past few months and I would love to share my playbook with you offline – from one rocket scientist to another. ‘
Obviously, Musk has taken Saylor’s advice and taken the plunge into the world of bitcoins.
The MicroStrategy founder now congratulates the 49-year-old on Twitter. Saylor wrote: “Congratulations and thanks to @elonmusk & @Tesla for adding #Bitcoin to their balance sheet. The whole world will benefit from this guidance. ‘