Tesla announced on Monday that it has purchased $ 1.5 billion worth of bitcoin, according to a filing with the SEC.
The company said it bought bitcoin for “more flexibility to further diversify and maximize returns on our cash,” the filing said. In addition to the purchase, Tesla said it would also start accepting bitcoin payments in exchange for its products. That would make Tesla the first major car maker to accept bitcoin as payment.
The move immediately raised questions about CEO Elon Musk’s behavior on Twitter over the past few weeks, where he was credited with raising the prices of cryptocurrencies such as bitcoin and dogecoin by posting positive messages about them and thereby encouraging more people to to buy.
Bitcoin prices soared to new highs on Monday after Tesla’s announcement, hitting a price of at least $ 43,200. Tesla shares were up more than 2% in premarket trading. Tesla warned investors of bitcoin’s price volatility in its SEC filing.
Tesla’s move Monday represents an investment of a significant percentage of its cash in the investment. According to the most recent filing, the company had more than $ 19 billion in cash and cash equivalents at the end of 2020.
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