Tesla Buys $1.5 Billion Bitcoin, Will Accept it For Payments – Trustnodes

Tesla Buys $1.5 Billion Bitcoin, Will Accept it For Payments

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Elon Musk

Bitcoin is nearing $44,000 after Tesla disclosed a $1.5 billion purchase in a filing with the Securities and Exchanges Commission.

“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.

Thereafter, 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,” Tesla said.

This is the biggest bitcoin purchase by a publicly traded company and adds to a very newly developing trend of corporate treasuries diversifying their holdings into bitcoin.

Microstrategy is the best known one, but there are others like Marathon Patent Group and now the nearly $1 trillion worth Tesla.

Elon Musk, the richest man on earth, has been studying bitcoin for at least the past two years and has engaged in conversation with Michael Saylor of Microstrategy.

He’s even stated cryptos are the future money of earth, and now he’s backed that statement by diversifying his company reserves into bitcoin, which appears to be continuous as Tesla “may acquire and hold digital assets from time to time or long-term.”

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