In the Security and Exchange Commission filing disclosure, Tesla revealed that it bought worth $1.5 billion of bitcoin, the famous cryptocurrency. The company further indicates that it may soon accept bitcoin as a form of payment for its cars subject to the regulation surrounding it.
As the news broke out, the price of bitcoin immediately increased by around 7% surpassing $40,000 per coin, says Alex Wilhelm of TechCrunch.
Elon Musk earlier announced its support
Previously, Elon Musk, TESLA CEO, has already announced that he is supportive of bitcoin. Nevertheless, purchasing such a big amount clearly speaks louder than words. Elon Musk though said that he is already late on this act, he should have started accumulating cryptocurrency eight years ago.
In its latest SEC filing, TESLA wrote earlier this year as it updated its investment policy indicating its intention to provide a more flexible mode of payment to further diversify and boost returns as cash will not be the only asset to adequately maintain operating liquidity. In its effort to diversify assets, it includes digital assets, gold bullion, gold exchange-traded funds, and other assets that may be relevant in the future.
Accepting bitcoin as payment will roll-out subject to applicable laws
With that in mind, the company has invested and accumulated $1.5 billion worth of bitcoin. This further indicates that the company is in line with its plan to include digital assets in its portfolio. This will be sufficient for the company to maneuver its cash and crypto markets.
But the company did not end its action on buying a huge amount of bitcoin, waiting for the regulatory clarification as it intends to include bitcoin as a form of payment in the near future. The company is simply waiting for applicable laws. Once there is a go signal it plans to start accepting bitcoin as payment although initially on a limited basis but it intends to expand and progress into it.
Elon Musk triggered bitcoin’s price hike
Recently, Elon Musk, TESLA CEO, has triggered a wave when he injects a silly joke on a cryptocurrency called Dogecoin which is something more quantifiable. TESLA has chosen bitcoin as the cryptocurrency of its preference that further boosts the blockchain and making it to be more acceptable worldwide. Especially when it will start accepting future transactions using bitcoin as the currency. With this plan, bitcoin may find its true value and consistent volume of transactions. It is notable that Elon Musk himself has triggered the increase of bitcoin prices through his social occurrences, which includes his action on changing his profile to just a single word “bitcoin” but later removed it before the price spike faded.
TESLA spent three paragraphs explaining that this plan may sound risky. But this would mark Elon Musk as intriguing and entertaining that can create a wave globally.
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