- Tesla bought $1.5 billion worth of Bitcoins today
- The company plans to add BTC as a payment method for its electric cars
- Bitcoin price soared to new all-time highs within minutes
Bitcoin has yet entered another milestone in its history. The world’s leading crypto jumped to new highs of $43,978.25 today a few hours ago, as seen on CoinMarketCap. The BTC spiked minutes after Tesla announced it had invested $1.5 billion in the pioneer digital coin.
Tesla entered BTC rally
The electric car giant disclosed in a filing with the Securities and Exchange Commission (SEC) today to acquire $1.5 billion worth of Bitcoins. Furthermore, the company mentioned its plans to add Bitcoins as a payment method for Tesla’s products in the near future.
The company stated it has updated its investment policy this January 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, Tesla invests a portion of its $19 billion reserves in digital assets, as well as into gold bullion, gold exchange-traded funds, and other assets that may be specified in the future.
The filling says e-car manufacturer may hold digital assets “from time to time or long term”.
On the flipside
- Tesla’s CEO Elon Musk has been playing Bitcoin and DogeCoin prices on Twitter the past few weeks by posting positive messages and driving the assets’ prices up.
- Bitcoin is still a highly volatile asset, the company warned about it in its SEC filing.
BTC price shot up
Bitcoins price shot up to the new record highs moments after Tesla’s announcement. The BTC spiked by nearly 12% within a single hour and fixed the new all-time high of $43,978.25 on Monday afternoon UTC.
For Bitcoin Tesla is the biggest investor, but certainly not the only one. There is a much broader base of institutional investors including Grayscale, MicroStrategy, MassMutual, and multiple other investors.
The institutional shift towards Bitcoin started in 2020 when traditional hedge funds and other wealth management companies started to see it as a store of value and protection from the decreasing purchasing power of the fiat currencies.