July 23, 2024
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Bitcoin News

The Union of Tesla and Bitcoin mining

The Union of Tesla and Bitcoin mining

Tesla is one of the top companies in Fortune 100. Elon Musk, one of the World’s wealthiest people, runs this Company. However, he transferred $1.5 Billion of the Company’s treasury cash to Bitcoin (BTC). Moreover, this trade startled many traditional investors.

Therefore, the investors are unable to understand how their investment in Tesla would relate to Bitcoin. However, much of Tesla’s revenue currently comes by selling the surplus renewable energy credits or RECs. There are more chances for the RECs to dry up in the next several years as the competing automakers produce their zero-emission vehicles.

Tesla’s Filing

In the filing with the United States Securities and Exchange Commission, the Company stated its update on the investment policy. The Company updated its investment policy to provide more flexibility in diversifying and maximizing the returns on idle cash.

Tesla said that it would be investing in some alternative reserve assets as part of the plan. They selected some assets such as gold bullion, digital assents, gold exchange-traded funds, etc. Moreover, they also invested $1.5 billion in Bitcoin as a part of this plan.

Additionally, Tesla may also acquire and hold some digital assets in the long term. Moreover, Tesla is accepting Bitcoin as a form of payment for their products. Therefore, the Bitcoin market feels that Tesla’s recognition and advancement in the crypto industry can be institutional validation of Bitcoin’s use as a store of value.

Using decentralized micro-energy sources

Tesla also can produce solar energy, which they use in their cars. The excess energy from Tesla’s micro-energy sources can be re-routed to run the crypto mining operations. This surplus energy gets either wasted or sold for a low cost without crypto mining.

This excess power can be turned into a digital asset, like Bitcoin, that is instantly bankable. In order to establish an interplanetary economy, humanity must have a better financial system that a decentralized cryptocurrency can offer.