Electric automaker Tesla on Monday announced that it has bought bitcoins worth $1.5 billion.
Tesla bought the bitcoins for more flexibility to further diversify and maximize returns on their cash, according to a filing with the Securities and Exchange Commission by the company.
The electric vehicle giant added that they will soon start accepting payments in bitcoin in exchange for its products subject to applicable laws and initially on a limited basis.
This move, if taken, would make Tesla the first major automaker to accept bitcoin. The recent investment by the automaker will give it liquidity once they start accpeting it in form of payments.
Following this announcement, the bitcoin started going up. The price of Bitcoin soared 15.4 % to around USD 44,500 Monday in reaction to Tesla’s announcement. After the announcement, even Tesla’s’ own shares raised by as much as 2%.
Even Elon Musk have been recently supporting Bitcoin a lot. The world’s richest person added the hashtag #bitcoin to his Twitter bio, and that move pushed bitcoins’ price by as much as 20%. “I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin.” said Elon Musk on Clubhouse, a new social media platform.
Now, we need to wait and see whether other giant companies will follow Tesla and buy bitcoin. If that happens, bitcoin will probably come into wider usage very soon. It will be very interesting to see Bitcoins’ journey hereon.
