Elon Musk: Tesla gets in on bitcoin – price hits record high
There has long been speculation about a possible bitcoin entry by Tesla. Now the company announced the move and boosted the BTC price directly to a record high.
Elon Musk has been flirting with Bitcoin for some time now. After the Tesla boss recently added a Bitcoin Crypto Profit symbol to his Twitter status, the rumours intensified. As now emerges from a filing with the Securities and Exchange Commission (SEC), the company has acquired Bitcoin for 1.5 billion US dollars.
Elon Musk invests 1.5 billion US dollars in Bitcoin with Tesla
According to the report, Tesla has updated its „investment guidelines to provide more flexibility to further diversify and maximise returns on cash.“ As part of this, the company is investing some of these funds in alternative „reserve assets“. These include gold bullion, gold ETFs and digital assets – such as bitcoin.
Subsequently, we have invested a total of US$1.5 billion in Bitcoin under this policy and may acquire and hold digital assets from time to time or over the long term. In addition, we expect to begin accepting Bitcoin as 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.
Bitcoin price hits record high
The Bitcoin price reacted immediately to the news, reaching a new all-time high of US$44.150 just shortly after the announcement. Tesla’s market entry is likely to have at least as big a signal effect as that of payment giant PayPal. The fact that the company is also hinting at Bitcoin as a means of payment marks a major step for global Bitcoin acceptance.