Tesla announces it has bought $1.5 billion worth of Bitcoin (BTC)
Tesla has announced in a recent SEC filing that it has bought $1.5 billion worth of Bitcoin (BTC).
It’s probably the big bitcoin news so many have been waiting for. That Elon Musk is a fan of Bitcoin (BTC) should be clear to everyone at the latest after the update of his Twitter biography. Therefore, many wondered when it would be so far that Tesla would also invest in Bitcoin. After MicroStrategy, as a pioneer in this field, had already done a lot of marketing for the leading Bitcoin Trader cryptocurrency in the corporate sector, it was a logical consequence for many that Tesla, with Elon Musk as a well-known Bitcoin fan, would also take this path with his company.
Tesla announces Bitcoin investment and wants to accept BTC as a means of payment
And today is indeed the day. Tesla officially announced that they have invested 1.5 billion US dollars in Bitcoin. The letter to the SEC states:
In January 2021, we updated our investment policy to provide us with more flexibility to further diversify our cash that is not needed to maintain adequate operating liquidity and maximise returns. Subsequently, under this policy, we have invested a total of US$1.50 billion in Bitcoin and may acquire and hold digital assets from time to time or on a long-term basis.
But that is not all. In addition to its immense Bitcoin investment, Tesla plans to adopt BTC as payment for its 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 reacts with new all-time high
The Bitcoin price has skyrocketed on the news and has already written a new all-time high of over $44,600.
Bitcoin price writes new ATH after Tesla investment in BTC
Tesla CEO Elon Musk first inquired about converting „large transactions“ on Tesla’s balance sheet to Bitcoin in a Twitter exchange with Microstrategy CEO Michael Saylor in December. Saylor encouraged Musk at the time to shift cash from Tesla into Bitcoin and „do your shareholders a $100 billion favour.“
If you want to do your shareholders a $100 billion favour, convert the $TSLA balance sheet from USD to #BTC. Other firms on the S&P 500 would follow your lead & in time it would grow to become a $1 trillion favour.
– Michael Saylor (@michael_saylor) December 20, 2020
Apparently Elon Musk, currently the richest man in the world, has taken this advice to heart. Anyone who still claims that Bitocin (BTC) is a speculative bubble cannot see the forest for the trees.