Tesla Inc. purchased around $1.5 billion worth of Bitcoins this week and will start accepting the crypto-currency as a payments instrument, according to its filing with the Securities and Exchange Commission of the United States. With Tesla’s latest investment, listed corporates, private companies and exchange-traded funds now own over $60.7 billion worth of Bitcoins as of date, according to Bitcoin Treasuries.
The Elon Musk owned electric-vehicle manufacturer is the latest corporation to purchase crypto-currencies as part of their treasury operations. The news led to This led to Bitcoins’ price soaring to a historical high of $47,000 on February 9, according to Coinbase.
The company says that it updated its investment policy last month “to provide us with more flexibility to further diversify and maximize returns on our cash.” Tesla will keep investing a portion of its cash, over and above its operating liquidity requirements, in specific alternative assets going forward. “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,” it said.
With Bitcoins’ price surging by 241% over the last three months, Musk has been increasingly vocal about Bitcoins’ growing acceptance as the future of finance will be crypto-based. He recently said that his friends had tried to convince him to get involved in Bitcoins as far back as 2013, according to CNBC.
“Clearly … should have at least bought some bitcoin eight years ago — talk about being late to the party,” he said during a conversation on the Clubhouse audio chat app. “I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin…I think bitcoin is really on the verge of getting broad acceptance by conventional finance people.” he said.