- Elon Musk invests in bitcoin.
- The company says it will begin accepting bitcoin as a form of payment for products in the future.
- The news was confirmed by Tesla's Securities and Exchange Commission (SEC) filing on Monday.
Elon Musk has shown his liking for bitcoin cryptocurrency in the past, but that liking has now turned to a real-life investment. Tesla on Monday announced that it invested $1.5 billion in the cryptocurrency. The investment news was confirmed by Tesla's 10-K report with the United States Securities and Exchange Commission (SEC) on Monday. Elon Musk was recently also seen using #bitcoin to his Twitter profile.
"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," the company said in the report. The news of Tesla's investment in bitcoin shot up the price of by up to $43000, which is said to be an all-time high amount.
The company ahead of its investment in bitcoin updated its investment policy to make it feasible for this opportunity.
"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," Tesla added in the report.
"We believe our bitcoin holdings are highly liquid. However, digital assets may be subject to volatile market prices, which may be unfavorable at the time when we want or need to liquidate them," the company wrote in its report to SEC on Monday. Last week, Tesla CEO Elon Musk caused cryptocurrency Dogecoin to surge by 50 per cent by a tweet where he shared a meme.