Tesla Inc has announced via an official filing that it has invested an aggregate of $1.5 billion into the leading cryptocurrency bitcoin (BTC).
On Monday morning, Feb 8, global financial messaging service First Squawk revealed that Tesla Inc. (TSLA) had joined an elite group of firms to hold bitcoin on their balance sheets.
The electric automaker outlined details surrounding the purchase via a Securities and Exchange Commission (SEC) 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. 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.”
Bitcoin Breaks All-Time High
At the end of January 2021, bitcoin soared past $37,000 after high-profile CEO Elon Musk simply changed his Twitter profile. Those words read “#bitcoin.”
It appears he wasn’t bluffing and is putting his, and more specifically, his companies money where his mouth is. BTC is up massively on the news, trading some 12% in the green. At press time, the alpha cryptocurrency was changing hands around $44,000 a coin.
The move perhaps highlights the impending corporate rush to protect assets against the mounting risks of the US dollar. First Squawk elaborates with a follow-up tweet:
“TESLA – MAY INVEST PORTION OF CASH IN SOME ALTERNATIVE RESERVE ASSETS INCLUDING DIGITAL ASSETS, GOLD BULLION, GOLD EXCHANGE-TRADED FUNDS IN FUTURE”
First Squawk notes that the purchase was made in January, however, given the current price action, the news is likely not yet priced in. BTC is outperforming the rest of the crypto market by some margin. Bitcoin’s market cap dominance is up 3%.