Tesla, Elon Musk’s multi-billion dollar company, has purchased a total of $ 1.5 billion worth of BTC and is starting to accept the cryptocurrency as payment, according to a financial performance report filed with the United States Securities and Exchange Commission for the fiscal year ended December 31, 2020.
According to the filing, in January 2021, the company updated its investment policy to “give us more flexibility to further diversify and maximize returns on our cash that are not required to maintain adequate operational liquidity.” This update was officially approved by Tesla’s board audit committee, and then the purchase was started.
According to the filing, Tesla will begin to accept bitcoin as a form of payment for its goods and services in the future, although it may or may not be “liquidated upon receipt.” So many see bitcoin as a long-term store of value, including an increasing wave of businesses, it would make sense for the company to hold onto the BTC instead of selling it for fiat. The filing indicated that Tesla “intends to hold these assets for the long term”.
It is likely that Tesla’s adoption of bitcoin will generate additional sales as many within the Bitcoin community love the company. The price of BTC then rose last month Musk changed his Twitter profile to “#bitcoin.” And Bitcoiners were further engaged when he went to Clubhouse to explicitly endorse Bitcoin shortly after.
Tesla’s filing became public less than a week after MicroStrategy held its “Bitcoin For Corporations” conference. Many institutions have followed the software intelligence firm and its CEO Michael Saylor in redirecting their treasury bonds to bitcoin, with MicroStrategy bought 0.1 percent of the total bitcoin supply last summer. The conference was an attempt to demonstrate the playbook for how and why it makes sense to hold bitcoin on a corporate balance sheet.