Tesla Dives into Bitcoin with $1.5B Investment
Tesla raised eyebrows in the finance world this morning after it was revealed in a SEC filing that the company would be investing $1.5 billion in cash into bitcoin. The filing also revealed that bitcoin would be accepted as a payment option, which customers have been requesting for more frequently. Bitcoin shot up in value to roughly $43,000 after the news circulated, and is currently at its highest valuation ever.
The SEC 10-K report states, “In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, we may invest a portion of such cash in certain specified alternative reserve assets.”
The news comes after Tesla CEO Elon Musk’s recent tweets about Dogecoin, another cryptocurrency that saw a sharp rise in recent weeks. Musk has championed bitcoin and other cryptocurrencies for some time now, so Tesla’s investment shows the company’s confidence that crypto and other blockchain technologies will have significant value in the future.
Edited by Maurice Nagle
