Elon Musk has set the cryptocurrency world ablaze with news today that Tesla has purchased $1.5 billion in Bitcoin.
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.
In addition to not only buying Bitcoin, Tesla said that they will acquire and hold digital assets (cryptocurrencies) and plan to begin accepting Bitcoin as a form of payment in the near future.
Immediately following the news, BTC rose 13.1% across global exchanges, and the total cryptocurrency market capitalization is up 10% to nearly $1.32 billion. The dramatic price increase broke through the previous all-time high and Bitcoin is currently holding above $43,000 on OKEx.
Though a pull back in price is certainly possible, many will be considering today’s news to be the greatest validation for BTC in the history of the cryptocurrency.
Recently, Elon Musk has also talked about Dogecoin on social media, which the market reacted to favorably by sending the meme-coin’s price to the moon.