Tesla announced Monday that it has bought $ 1.5 billion worth of bitcoin, according to a file with the SEC.
The company said it bought bitcoin for “more flexibility to diversify and maximize cash returns,” according to the record. In addition to the acquisition, Tesla said it will begin accepting payments in bitcoin and in exchange for its products. That would make Tesla the first major automaker to accept bitcoin as payment.
The move has raised immediate questions about CEO Elon Musk’s behavior on Twitter in recent weeks, where he has been credited with raising the prices of cryptocurrencies like bitcoin and dogecoin by posting positive messages about them and therefore encouraging more people to buy.
Bitcoin prices rose to new highs months after the Tesla announcement, reaching a price of at least $ 43,200. Tesla shares rose more than 2% in premarket trading. Tesla has warned investors about the volatility of the Bitcoin price in the SEC filing.
Tesla’s move on Monday represents an investment with a significant percentage of its investment cash. The company had more than $ 19 billion in cash and cash equivalents on hand by the end of 2020, according to the latest record.
This is breaking news. Please check again for updates.