Elon Musk's Tesla Invests $1.5 Bn In Bitcoin; Cryptocurrency Hits All Time High Above $43K

Tesla on Monday invested $1.5 billion in the bitcoin cryptocurrency signaling its intent to begin accepting the cryptocurrency as a form of payment.

Bitcoin

Tech billionaire Elon Musk's electric vehicle company Tesla on Monday invested $1.5 billion in the bitcoin cryptocurrency signaling its intent to begin accepting the cryptocurrency as a form of payment. Soon, Bitcoin hit a record-high near $44,795.20 around 1325 GMT before cooling slightly to $44,207.95.

According to its annual 10-K report filed with the US Securities and Exchange Commission (SEC), Tesla confirmed the investment saying, "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." 

The company ahead of its investment in bitcoin updated its investment policy to make it feasible for this opportunity.

"In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximise returns on our cash that is not required to maintain adequate operating liquidity," Tesla said in the report.

"Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy. 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," it added.

It is to be noted that the announcement has come amid renewed interest shown by Musk in cryptocurrency and requests from Tesla customers for accepting bitcoin for buying the cars. Musk was recently also seen using #bitcoin to his Twitter profile.