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Tesla buys $1.5B of Bitcoin — pushing its price to record-breaking levels

Tesla Motors Chairman and CEO Elon Musk

Tesla has bought $1.5 billion worth of Bitcoin BTC according to an SEC filing.

This news has caused Bitcoin’s value to rise over 10%. At the time of writing, bitcoin’s price was over $42,000.

In the filing, the company said that it may acquire and hold digital assets from time to time or long-term:

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.

The electric carmaker also added that it may accept Bitcoin as a form of payment in the future. Elon Musk has been a well-known backer of digital currency, and last year he asked about converting Tesla‘s balance sheet to Bitcoins.

Recently, Musk’s tweetstorm caused dogecoin, a cryptocurrency that started as a joke, to go over 7 cents.

Published February 8, 2021 — 13:26 UTC