According to an SEC filing, Tesla invested $1.5-billion in bitcoin and Elon Musk could start accepting the cryptocurrency as payment. This news caused the price of Bitcoin to soar to above $44,000 Monday, thus giving Tesla more flexibility to further diversify and maximize returns on its cash. The company reported its first annual net profit in 2020, and is now the world’s most valuable automaker, thanks to its S&P 500 inclusion. Read more for a video and additional information.
Tesla isn’t the first large company to invest in bitcoin, as software company MicroStrategy acquired 21,454 bitcoins, worth $250-million at the time, putting the coin in place as a reserve asset for the entity. Since then, they’ve acquired at least 49,000 more coins, which are now worth a total of over $3-billion.
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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. 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,” said Tesla said in a 10-K filing with the U.S. markets regulator.