Elon Musk’s Tesla has invested $1.5 billion in Bitcoin. As stated in the filing filed with the U.S. Securities and Exchange Commission (SEC).
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The automaker clarified that it plans to eventually integrate Bitcoin as a means of payment for its products.
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According to the document, in January 2021 Tesla updated its investment policy for a more flexible approach to diversification and maximizing returns on funds not required to maintain operating liquidity. A portion of these funds may be invested in “certain alternative reserve assets”, including cryptocurrencies.
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Bitcoin’s price reacted to the news by rising to a new all-time high above $44,000.
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BTC/USD. Data: TradingView.
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The market capitalization of the leading cryptocurrency surpassed $800 billion for the first time. At the time of writing, the figure stood at $816.4 billion, according to CoinGecko.
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Barry Silbert, founder of Digital Currency Group, noted that in deciding to invest in Bitcoin Tesla joined the ranks of MicroStrategy and asset manager Grayscale Investments.
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Player 3 has entered the race. Good luck, @elonmusk https://t.co/tMvarGQtJ9
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— Barry Silbert (@BarrySilbert) February 8, 2021
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The CEO of MicroStrategy Michael Saylor thanked Musk for adding Bitcoin to Tesla’s balance sheet.
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Congratulations & thank you to @elonmusk & @Tesla on adding #Bitcoin to their balance sheet. The entire world will benefit from this leadership.https://t.co/FVTepBqAI2
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— Michael Saylor (@michael_saylor) February 8, 2021
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In December 2020, Musk asked Saylor whether in the Bitcoin network transactions worth $100 billion were possible. In response, MicroStrategy’s CEO spoke of purchasing the first cryptocurrency worth $1.3 billion and offered to share a course of action.
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Founder of Tesla and SpaceX has repeatedly spoken about Bitcoin. Earlier in February, in a Clubhouse discussion, the entrepreneur described himself as a proponent of digital gold.
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Before that, Musk placed the Bitcoin hashtag in his Twitter profile description. Since then the asset’s price reached $38,250 on Bitstamp.
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The text of one of Musk’s tweets was inserted into a block #668 197 of the Bitcoin network.
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For details on how billionaires are changing their views on cryptocurrencies, see Forklog’s feature:
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From denial to acceptance: how billionaires move to the side of cryptocurrencies
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