Tesla announces that it bought $1.5 billion worth of Bitcoin
- Bitcoin’s price soared to an all-time high, breaking above $44,000 apiece, after Tesla revealed a big stake in the digital coin.
- The electric car maker also said it would start accepting payments in bitcoin for its products.
Bitcoin’s price jumped sharply to an all-time high after Tesla revealed at least a $1.5 billion stake in the cryptocurrency and said it would start accepting payments in the digital coin for its products.
In a filing with the Securities and Exchange Commission, Tesla announced Monday that it bought $1.5 billion worth of bitcoin for “more flexibility to further diversify and maximize returns on our cash.” It also said it may invest a future portion of its assets in digital assets and that it will accept bitcoin as payment for products “subject to applicable laws and initially on a limited basis.”
The move makes Tesla the first major automaker to accept bitcoin as payment.
Given there are various other forms of payment that are much cheaper, faster, and scalable that Bitcoin such as Cardano, XRP, and Ethreum, only time will tell which form of payment will become the prime one used.