The publicly traded company Tesla has announced in a Securities and Exchange Commission (SEC) Form 10-k filing that the company has purchased $ 1.5 billion worth of bitcoin. When the news broke, the price of the major cryptocurrency jumped more than 15%, hitting a new all-time high of $ 44,899 per coin.
Tesla, the U.S. electric vehicle and clean energy company based in Palo Alto, California, has revealed the company has invested bitcoin (BTC). This follows the high number of dogecoin (DOGE) tweets from Tesla founder Elon Musk over the past two weeks.
The announcement was found in one File SEC Form 10-k stating that the company “owns and may acquire digital assets that may be subject to volatile market prices, impairments and unique risks of loss”.
“In January 2021, we updated our investment policy to give us more flexibility to further diversify and maximize returns on our cash that are not necessary to maintain adequate operational liquidity,” continues the Tesla 10-k SEC filing.
“As part of the policy, duly approved by the Audit Committee of our Board of Directors, we may invest some such cash in certain alternative reserves, including digital assets, gold bullion, exchange traded gold funds and other assets such as specified in the future. Thereafter, we invested a total of $ 1.50 billion in bitcoin under this policy and can acquire and hold digital assets from time to time or in the long term, ”the SEC filing notes said.
Additionally, Tesla explained in the filing that the company bitcoin (BTC) as a payment method for Tesla products.
“In addition, we expect to accept bitcoin as a form of payment for our products in the near future, subject to applicable law and initially on a limited basis, which we may or may not liquidate upon receipt,” Tesla said.
Of course, the crypto community was very happy to learn that Tesla is now and remains a bitcoin holder BTC on her balance sheet. The price of bitcoin (BTC) has literally increased in value by about $ 4,000 since the Tesla news started to go viral.
Significantly large BTC were short positions liquidated immediately for $ 42,700 per unit. After Digital Currency Group founder Barry Silbert tweeted about the competition between Microstrategy and Grayscale, Silbert welcomed Elon Musk into the race.
“Player 3 has started the race. Good luck, Elon Musk, ”tweeted Silbert. At the time of publication, bitcoin (BTC) trades hands for prizes between $ 43k and $ 44k.
How do you feel about Tesla adding $ 1.5 billion to its balance sheet? Let us know what you think about this topic in the comments below.
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