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October 4, 2022
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Tesla invests $ 1.5 billion in Bitcoin, according to the SEC

Elon Musk’s Tesla invested $ 1.5 billion in Bitcoin, according to its latest filing with the U.S. SEC.

The American vehicle giant informed which changed its investment policies in January 2021 to “further diversify and maximize returns” on cash that it did not need for operating liquidity. Subsequently, he sought approval from his “audit committee” to invest the surplus dollars in alternative reserve assets. The strategy led them to Bitcoin, the most valuable decentralized cryptocurrency in the world.

“We have invested a total of $ 1.5 billion in bitcoin under this policy and we can acquire and maintain digital assets from time to time or long term,” confirmed the Tesla document.

The company also said it plans to allocate more of its cash reserves to Bitcoin. And, if necessary, you can also start accepting cryptocurrency as a way of paying for your products in the future, as long as they remain within the legal limits.

The lawsuit came after weeks of suspense over Musk’s cryptic messages about Bitcoin. On January 29, Tesla’s founder changed his Twitter bio to the word ‘bitcoin’, followed by a tweet that said “in retrospect, this had to happen”. Later, Musk said in a forum online who was late to buy Bitcoin.

Bitcoin reaches new ATH

Each of his mentions of Bitcoin put the market in a shopping frenzy. For example, on January 22, the BTC / USD exchange rate increased by more than 15%. The euphoria returned again on February 3, after the comments Musk’s pro-Bitcoin, raising its prices by up to 6.23%.

Entering the new week, Tesla’s SEC filing repeated the scenario of the BTC / USD bomb. The cryptocurrency surpassed its previous record close to $ 42,000 and formed a new one close to $ 43,823. While following a modest correction, traders poured optimistic comments across social media that how Tesla’s involvement with BTC would send its prices to even higher levels.

“I hope everyone is ready for a $ 50,000 Bitcoin,” said Alex Krúger, an independent macro analyst.

Tesla’s decision made it join the ranks of other major companies that added Bitcoin to their financial reserves or enabled their services in their conventional offerings. They include Nasdaq-listed MicroStrategy, Square, as well as billionaire hedge fund managers like Paul Tudor Jones and Stan Druckenmiller.

Source: NewsBTC

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