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- Tesla’s $1.5 billion investment into Bitcoin and pitch to accept it as a viable payment method has thrust the crypto to an all-time high
- Investors strapped in as the currency surged past its high point set in January and hit US$47,513 (roughly A$61,490) following Tesla’s significant play in the volatile digital asset
- Nestled in a filing to the U.S Securities and Exchange Commission, the electric car manufacturer also announced it anticipates taking Bitcoin as a form of payment in the near future
- While marking a significant play for one of the world’s most hotly discussed companies, the announcement will still be subject to applicable laws
Tesla’s $1.5 billion investment into Bitcoin and pitch to accept it as a viable payment method has thrust the crypto to an all-time high.
The currency flew past its previous record set at the beginning of the year, reaching US$47,513(roughly A$61,490) at around 11:05 am AEDT, shortly after investors caught wind of Tesla’s pledge.
Nestled in a filing to the U.S. Securities and Exchange Commission, the electric car and battery giant disclosed it holds and may acquire “digital assets that may be subject to volatile market prices, impairment and unique risks of loss.”
The announcement forms part of Tesla’s updated investment policy, which looks to further diversify and maximise returns on cash assets not required to maintain adequate operating liquidity.
The filing went on to reveal Tesla had invested an aggregate $1.5 billion in Bitcoin under the policy and moreover, expects to begin accepting Bitcoin as a form of payment in the near future.
Elon Musk’s Twitter account offers a telling indication of his public position on cryptocurrencies, which most recently has featured musings on fellow currency Dogecoin.
Dogecoin is the people’s crypto
— Elon Musk (@elonmusk) February 4, 2021
Bitcoin is my safe word
— Elon Musk (@elonmusk) December 20, 2020
While the play marks a significant investment from one of the world’s most hotly discussed companies, the announcement is still subject to applicable laws and initially, only a limited basis.
The exact details of the investment, such as how many Bitcoins Tesla purchased or at what price, were not disclosed in the filing.
Today’s news represents the latest instalment in a recent spurt of record volatility for Bitcoin, which has effectively doubled in value since December last year.
