On Monday morning, February 8th 2021, Tesla disclosed in a SEC filing that it had invested $1.5 Billion in Bitcoin, the most commonly known form of cryptocurrency. The company also noted that it is planning to accept bitcoin as a form of payment for its cars, though it did note that there could be some regulatory uncertainty involved with the payments. Following news of the investment, bitcoin prices jumped about 7% to more than $40,000 per coin.
Tesla’s filing shows that earlier this year it amended its investment policy to provide more flexibility to maximize and diversify assets and returns on cash that was not required to maintain adequate operating liquidity. The statement showed that it would have the option of putting its cash in certain alternative reserve assets, including digital assets, gold bullion, gold exchange-traded funds, and other assets as specified moving forward.
I guess we will have to stay tuned to find out what more the future may hold for Elon Musk. Tesla (Nasdaq: TSLA) certainly has become anything but your average stock over the last couple of years!
