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HomeCryptoCurrencyElon Musk's Tesla buys $ 1.5 billion worth of Bitcoin (BTC)

Elon Musk's Tesla buys $ 1.5 billion worth of Bitcoin (BTC)

Tesla bought USD 1,500 million in bitcoins last January, as reported by the automobile company before the US Securities and Insurance Commission (SEC) in its annual report.

Notably, the document released by the SEC earlier today reflects that Tesla plans to accept Bitcoin as a means of payment for its products.

The The automobile company, owned by Elon Musk, the richest person in the world, said that this acquisition is due to an update of its financial policies.

Tesla seeks to place excess cash in reserve assets of value, such as Bitcoin, although it also considers the index funds of gold and other assets that will be reporting soon.

He also assured that could be acquiring more digital assets or cryptocurrencies soon , as part of its strategy. However, they state that unfavorable scenarios could be found to liquidate a position in digital assets, although they consider that their position in bitcoin is quite liquid (that is, it can be sold at any time).

The company claimed that its cash balance has increased in most of its revenue areas, in part because production of Tesla units has partially stopped, due to New York State’s operational restrictions on the coronavirus pandemic. It is in that northwestern state of the United States where Tesla has one of its largest assembly plants.

However, the company’s enormous need to invest cash in research and development of its products , deserves to use a vehicle that maintains or increases its value over time, such as Bitcoin . According to the report filed with the SEC, the company had for the month of December 2020, almost USD 20 billion in cash.

While Elon Musk, the founder and CEO of Tesla, has Dedicated in recent weeks to influencing the Dogecoin cryptocurrency market with his comments on Twitter, the company he leads acquires this important reserve in BTC.

If we average the price of Bitcoin during January at USD 38,000, we would have that Tesla could have bought in that month between 30,000 and 40,000 BTC.

“In hindsight, it was inevitable,” Musk tweeted when he changed his Twitter bio to include the hashtag #Bitcoin, although days later he removed it.

Since then It was speculated that the company had bought BTC or would be about to do so , which is confirmed today according to the official document of its report to the SEC, the regulatory body for financial activities in the United States.

The comp Tesla’s bitcoin ration seems to be generating a significant increase in the price of Bitcoin (BTC) in the markets, already approaching USD 45,000 per unit.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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