In a breaking story that emerged today, Elon Musk’s electric vehicle giant Tesla has announced that it bought $1.5 billion in bitcoin in January 2021. Shortly after the news was revealed, the asset price exploded to a new all-time high of nearly $44,000.
Tesla Gets Into Bitcoin With $1.5B Allocation
Elon Musk’s history with the primary cryptocurrency has been somewhat controversial. In the past, he has questioned the asset’s potential to have a role in the monetary system, but he offered an entirely different opinion lately.
Musk did a 180-turn as he recently outlined his regret of not buying any years ago when BTC was significantly cheaper. However, it seems that the world’s richest man has managed to purchase some bitcoin portions now for the electric vehicle company that he runs, according to a Form 10-K filed with the US Securities and Exchange Commission (SEC).
“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.
Thereafter, 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. – Reads the filing.”
Bitcoin Price Explodes To A New ATH
Naturally, such a massive announcement from one of the most powerful companies had an immediate effect on the bitcoin price.
The cryptocurrency traded south of $40,000, but once news started to spread, it added about $4,000 of value. Consequently, BTC broke its previous record of $42,000 registered in early January and went into uncharted territory.
In the following minutes, bitcoin spiked to a new all-time high of just shy of $44,000. Despite retracing since then, BTC still trades above the previous record – $43,000.