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.
- Cryptocurrency Hardware Wallet: allows you to send and receive crypto assets, securely and conveniently. Your Ledger hardware wallet can easily be connected into a computer and managed through the Ledger Live companion app. The Ledger Nano S keeps your private keys protected
- Secure: Your confidential data is never exposed: it is stored inside a strongly isolated Secure Chip, and locked by an 8 digit PIN code
- Multicurrency: enables you to manage multiple assets on the same device, and supports over 30 cryptocurrencies and all ERC20 tokens
- Easy to use: designed around an intuitive user experience. check and confirm transactions on the built-in display and confirm with using the two physical buttons (anti-malware second factor verification)
- Backup & restore: Your accounts are backed up on a recovery sheet, and can easily be restored on any Ledger device or compatible wallet (BIP39/BIP44)
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.