The World’s richest man backed by his company Tesla, has invested a whopping sum of $1.5 billion dollars in Bitcoin. The company has announced that it will start accepting Bitcoin as a means of payment for its products in the future. Tesla’s filing with the United States of America’s Securities and Exchange Commission (SEC) confirmed Tesla’s investment in Bitcoin.
Musk’s love for cryptocurrencies is not new. In fact he has showed his liking for Bitcoin and cryptocurrencies in general in the past, before he rose to the position of World’s richest man. This liking for Bitcoin has materialized into a real-life investment. The news of Tesla’s investment was announced on the 7th of February, 2021.
Specifically, the company said, ‘We invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt”.
Since the company’s announcement, the price of Bitcoin has risen up to $43,000. This is said to be the the highest amount of all time. The company had been on the race of updating its investment policy to ensure that its policy is feasible with the opportunity.
In the company’s report it said, ‘In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future’.
Just last week, after a tweet of the single word ‘DOGE’, the value of cryptocurrency Dogecoin shot up by 50 percent showing how great of an influence Elon Musk has.
The company’s report to the United States of America’s Securities and Exchange Commission (SEC) concluded with, ‘We believe our bitcoin holdings are highly liquid. However, digital assets may be subject to volatile market prices, which may be unfavourable at the time when we want or need to liquidate them’.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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