banner
Tesla’s investment in bitcoin is official
Tesla’s investment in bitcoin is official
Bitcoin

Tesla’s investment in bitcoin is official

By Marco Cavicchioli - 8 Feb 2021

Chevron down
Listen this article
download

Tesla, Inc. has officially notified the SEC that they have invested a total of $1.50 billion in bitcoin in January 2021

In the official document, they write that they have updated their investment policy to provide more flexibility, further diversify and maximize returns on cash not needed to maintain operating cash. 

Some of this cash has been invested in certain alternative assets, including digital assets, as well as gold bullion and exchange-traded funds. 

They further write: 

“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”. 

This news immediately brings to mind the exchange of tweets that took place at the end of December between Elon Musk and Michael Saylor of MicroStrategy, regarding the possibility of converting part of Tesla’s balance sheet into BTC.

Clearly, Saylor must have convinced Musk of the merits of the strategy of converting part of the reserves from dollars to bitcoin, in the hope of compensating for the hypothetical loss of value due to inflation, as has already been done by MicroStrategy and other companies. 

In addition, MicroStrategy itself recently announced that it has gathered 5,600 members for its Bitcoin for Corporations initiative. In fact, it is not only Tesla and MicroStrategy that have converted part of their cash reserves into BTC. 

Tesla’s investment sends Bitcoin soaring

The news of Tesla’s investment also sheds new light on Elon Musk’s cryptic tweet from late January, when he said

“In retrospect, it was inevitable”. 

In fact, at that point Tesla had supposedly already invested in bitcoin, so that tweet most likely referred directly to this investment.

Obviously, the price of bitcoin immediately soared on hearing this news that it hit a new all-time high of over $43,000. 

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

We use cookies to make sure you can have the best experience on our site. If you continue to use this site we will assume that you are happy with it.