Tesla, the electric carmaker, has said on Monday, through a recent SEC filing it has purchased $1.5 billion worth of bitcoin. This comes few days after Elon Musk has changed his Twitter bio.
According to a news post on Theblock, Tesla has bought $1.5 billion worth of BTC on Monday. A statement from Tesla said that they have updated their investment policies from January 2021. This is to provide a stable field for returns on cash that is not needed for maintaining sufficient operating liquidity.
Tesla plan on doing it long-term. The move is not surprising because Tesla CEO Elon Musk is a strong crypto advocate who firmly believed in the BTC. Musk has always openly said his belief in bitcoin becoming the next financial market.
Frank Chaparro, who is the Director of News at Theblock, had this to tweet on Tesla buying $1.5 billion worth BTC.
Besides, the Tesla CEO is known for his affinity towards DOGE, recently changing his Twitter bio, as well as tweeting that DOGE is the future. This should clear doubts for the go-to choice of institutions for cryptocurrencies.
An interesting thing to note here is that the carmaker is willing to go a step ahead and would be willing to take payments in bitcoins for cars. If they do that, they will be the first automaker in the world to do so.
Billionaire Elon Musk has been vocal about BTC and over the last month has been pushing both bitcoin and DOGE through his tweets. It just goes to show how much value to the market his few choice of words can do.
Musk has changed his Twitter bio to BTC, and instantly, bitcoin rose more than 20%. Likewise, last week, he supported DOGE, saying that the future is DOGE, surging it. When asked, Musk frankly said that his tweets about DOGE and bitcoin were jokes, and users need not take it seriously.
He occasionally likes to say jokes about DOGE. Surprisingly, his tweets have the power to make or break the bitcoin market. Monday’s move by Tesla saw its percentage surge. They have close to $19 billion in cash equivalent.
It is interesting to note that BTC’s purchase from Tesla makes it the largest bitcoin buyer after MicroStrategy. MicroStrategy also purchased close to $1.5 billion. CEO Michael Saylor, who swears by Bitcoin too, is vocal about BTC and encourages his followers to invest in it.
Regarding accepting payments for products, the company said that it depends on the laws and may begin on a limited basis. BTC’s price is currently hovering at $42000 in the market, more than 10%.
This is a good sign that a famous automaker is now engaging in BTC after organizations, athletes, and musicians have done the same.