 |
| Tesla buys $ 1.5 billion bitcoin |
Electric car maker Tesla announced on Monday that it has bought $ 1.5 billion worth of Bitcoin.
In a document filed with the US Securities and Exchange Commission, the company said that the purchase of Bitcoin was aimed at more flexibility in diversifying and maximizing cash returns.
Tesla also said that it plans in the future to accept bitcoin payments for its products on a limited basis, subject to the limitations of current laws.
This makes Tesla the first major automaker to agree to the move. The move raised direct questions about CEO Elon Musk's actions on the stage in recent weeks.
By spreading positive messages encouraging more people to buy digital currencies, it has gained credibility to raise the price of cryptocurrencies like Dogecoin.
After Tesla's announcement, Bitcoin's price rose nearly 7% on Monday, reaching a new high of over $ 40,000.
Tesla's stock price rose by more than 2.5% in pre-market trading, and Tesla warned investors about Bitcoin's price volatility in a letter to the US Securities and Exchange Commission.
According to the latest regulatory documents, Tesla's move to Bitcoin is a significant portion of its mutual funds, with the company having more than $ 19 billion in cash by the end of 2020.
Tesla previously stated that it is interested in cryptocurrencies, but buying such a large amount of digital currencies is very compelling.
Tesla wrote in the paper that earlier this year it updated its investment policy to allow more flexibility in diversifying and maximizing returns that do not require cash to maintain adequate operating liquidity.
He added that in the future, he may choose to invest the cash in some alternative reserves, including digital assets, gold bullion, gold trading funds, and other specified assets.
The popular electric car company has invested a total of $ 1.5 billion in Bitcoin and has stated that it may acquire and hold digital assets from time to time or for an extended period of time.
With this move, Tesla followed the lead of MicroStrategy. MicroStrategy is a software company that recently invested billions of dollars in Bitcoin.