On Monday, Tesla announced about it purchasing bitcoin worth $1.5million.
As per a Tesla’s filing with Security & Exchange Commission, the firm said that it purchased the bitcoin for better flexibility in diversifying and maximizing returns on its cash.
The electric car manufacturing giant said that it will begin accepting payments through bitcoin in return of products, subject to necessary laws and on limited basis initially. This would make the firm the first key automaker to take such a measure. The bitcoin worth $.15 million will give the firm liquidity in cryptocurrency when it begins accepting it in exchange of its products.
Tesla’s entry into bitcoin showcases investment of an essential percentage of the firm’s cash in to the investment. It may be noted that the firm had over $19 billion as cash as well as cash equivalents at 2020 end, as per its latest filing.
The move raises questions on the recent behaviour of CEO Elon Musk on Twitter, wherein he credited for elevating the cryptocurrency prices such as dogecoin and bitcoin by putting up positive messages which have motivated more individuals to purchase digital currencies.
Notably, after Tesla’s announcement, the bitcoin prices increased to new heights on Monday, arriving at around $44,200.