Tesla announced Monday that it had purchased $ 1.5 billion worth of Bitcoin, according to a report with the SEC.
The company said it bought the bitcoin in order to “have more flexibility to further diversify and maximize the returns on our cash.” In addition to the purchase, Tesla announced that it would accept payments in Bitcoin in exchange for its products. This would make Tesla the first major automaker to accept Bitcoin as a means of payment.
The move immediately raised questions about CEO Elon Musk’s behavior on Twitter over the past few weeks, where he has been credited with raising the prices of cryptocurrencies like Bitcoin and Dogecoin by posting positive news about them and bringing more people to buy has encouraged.
Bitcoin prices soared to new highs on the Monday after Tesla’s announcement, hitting a price of at least $ 43,200. The Tesla share rose in premarket trading by more than 2%. Tesla warned investors about the volatility in Bitcoin price in its SEC filing.
Tesla’s move on Monday means investing a significant percentage of his money in the investment. The company had more than $ 19 billion in cash at the end of 2020, according to the latest filing.
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