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. 

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Layer-1 Platforms: A Framework for Comparison

The Block Research was commissioned by Algorand to create Layer-1 Platforms: A Framework for comparison, which provides a “look under the hood” at seven platforms: Algorand, Avalanche, Binance Smart Chain, Cosmos, Ethereum/Ethereum 2.0, Polkadot, and Solana. We assess their technical design, related ecosystem data, and qualitative factors such as key ecosystem members to get an understanding of how they differ. Having done this analysis, we draw some insights for what the future of the broader smart contract landscape could look like for years to come. 
Read Full Story
Aug 11, 2021, 5:18PM UTC
More