Last Updated on February 8, 2021
Elon Musk has helped to drive popularity of cryptocurrencies, including bitcoin and dogecoin
Tesla, the electric car company run by the world’s richest person, Elon Musk, revealed on Monday that it had bought $1.5bn (£1.1bn) in bitcoin and said it may soon accept payment in the popular but controversial cryptocurrency.
The company disclosed the bitcoin holding in a filing with the US Securities and Exchange Commission (SEC) on Monday. Tesla said that it had “updated our investment policy to provide us with more flexibility to further diversify and maximize returns” to allow it to invest cash reserve in “alternative reserve assets including digital assets”. It said that since the decision was approved by its audit committee it had “invested an aggregate $1.50bn in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term”.
Also Read: Tesla to enter India in mid 2021
Tesla to accept Bitcoin for Vehicle purchases
Tesla customers have been calling on founder and CEO Elon Musk to accept bitcoin for vehicle purchases recently. Musk has been vocal about backing the cryptocurrency on Twitter, even adding #bitcoin to his profile recently.
“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 added.
News of the Tesla investment has sent the price of bitcoin up to more than $43,000 this morning, breaking its all-time high. The price of the cryptocurrency has been gradually increasing throughout 2021, as demand from both institutional and retail buyers has increased. It still remains a volatile cryptocurrency, though, with the price dipping below $30,000 in January alone.
The price of dogecoin also rose after Musk tweeted about it. Dogecoin’s price rose by 50% on 4 February shortly after he tweeted that “Dogecoin is the people’s crypto”.