Tesla says it has bought $1.5 billion worth of bitcoin

advertisement

Tesla has disclosed in an SEC filing published Monday that it has bought $1.5 billion worth of bitcoin.

"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," reads the filing. "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."

In addition to the bitcoin purchase, Tesla expects to begin accepting bitcoin as a form of payment for its 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's price has been soaring on the back of this news. It is currently trading around 10% up at about $42,500. 

Tesla CEO Elon Musk first inquired about converting "large transactions" of Tesla's balance sheet into bitcoin in December in a Twitter exchange with Microstrategy CEO Michael Saylor.

Saylor at the time encouraged Musk to shift cash from Tesla to bitcoin and "do your shareholders a $100 billion favor."

Shortly after that exchange, Musk wrote in a separate tweet at the time: "Bitcoin is my safe word."

Earlier this month, Musk changed his Twitter bio to mention bitcoin and said: "I think bitcoin is really on the verge of getting broad acceptance by sort of the conventional finance people."

A week later, Musk removed the bitcoin mention from his Twitter bio and posted a series of Dogecoin-related tweets. Musk has previously said that he "occasionally" makes "jokes about Dogecoin," suggesting that they shouldn't be taken seriously. 

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More