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Elon Musk’s Tesla invests $1.5 billion in Bitcoin

Elon Musk's Tesla invests $1.5 billion in Bitcoin

On February 8, Tesla Inc. unveiled that it had purchased $1.5 billion worth of Bitcoin. The company’s latest filing with the SEC revealed its digital currency position. Tesla has filed a Form 10-K with the SEC, indicating that it had acquired $1.5 billion in Bitcoin in January. Moreover, the firm advocated that it would start accepting payments in Bitcoin in exchange for its products. This will make Tesla the first significant auto manufacturer to accept crypto payments.

According to the SEC filing, the $1.5 billion held in Bitcoin renders an estimated 8% of the whole $19.4 billion that Tesla holds in liquid assets and cash. The decision has inflated questions around Tesla CEO Elon Musk’s behavior on social media lately. He has supported cryptocurrencies like Bitcoin and Dogecoin, tweeting powerful messages that have prompted more people to purchase the virtual currencies.

Elon Musk promotes Bitcoin and Dogecoin on twitter

Moreover, two weeks ago, the Tesla founder added the hashtag #bitcoin to his Twitter bio, which helped increase Bitcoin price by approximately 20%. Moreover, his recent tweets on Dogecoin, a cryptocurrency based on an internet meme, have skyrocketed the digital currency price. After Tesla’s statement on Monday, Bitcoin prices have climbed to new highs, hitting a price of around $44000. Besides, various industry enthusiasts are anticipating a massive bull run ahead. Tesla shares also soared more than 2.5% in premarket trading. In its SEC filing, the automaker notified its investors of the volatility linked with the price of Bitcoin.

However, Tesla’s decision to acquire Bitcoin comes after the CEO of MicroStrategy, Michael Saylor, invited Elon Musk to venture into the leading crypto. It was not long before Musk started tweeting more regarding Bitcoin and even associating the cryptocurrency to his Twitter bio. Tesla is not the only first company to hoard Bitcoin on its books. MicroStrategy, a business intelligence firm headed by Michael Saylor, has contributed $1.15 billion to purchase Bitcoin. Moreover, it even sold the securitized debt to acquire more digital assets.

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