Tesla Invests $1.5B in Bitcoin, Plans to Accept Crypto Payments

• In an annual report filed with the U.S. Securities and Exchange Commission for the year ending Dec. 31, 2020, the firm said that under its new investment policy it has “invested an aggregate $1.50 billion in bitcoin … and may acquire and hold digital assets from time to time or long term.”
• The electric car company founded by Elon Musk added, “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.”
• The policy includes investment in “alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets.”
• Tesla also expects to begin accepting bitcoin as a form of payment for its products “in the near future.” This would initially be on a “limited basis, which we may or may not liquidate upon receipt.”
• As the news hit, the bitcoin market surged, taking spot prices to a new record high of $43,457.86.
• Musk recently said, while he’s a bit “late to the party,” he is a bitcoin supporter.
• “I should have bought [bitcoin] eight years ago … I do at this point think bitcoin is a good thing. I am a supporter,” he said in a chat on Feb. 1.

By : Daniel Palmer