Telsa, the world’s most valuable automaker and the 7th largest company in the world, has disclosed that it has acquired $1.5 billion in bitcoin in an SEC filing.
$1.5 billion is about 10% of Tesla’s cash reserves.
In addition, the company noted that it may also accept bitcoin as a form of payment in future for its cars.
Following the news, the price of bitcoin has shot up to a new all-time high above $44, 000 – a nearly 15% increase in value in the last 24hrs – as of this writing.
This announcement comes just days after Tesla CEO, Elon Musk, tweeted and changed his profile to include the bitcoin logo before later removing it.
According to the SEC filing:
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, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future.
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.”
This latest move by Tesla comes in light of growing adoption of cryptocurrencies by some of the world’s largest institutional investors.
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