Image: Bein Crypto
Tesla bought $1.5 billion worth of Bitcoin and said it would begin accepting cryptocurrency as a form of payment for its products in the future. After this news broke, Bitcoin’s price spiked, and at the time of this writing, has exceeded $43,000.
Today, form 10-K for the year ending December 31, 2020, was filed with the SEC. Tesla announced that it has updated its investment policy to give itself more flexibility to further diversify and increase the return on its cash, and has acquired $1.5 billion in Bitcoin cryptocurrency.
"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."
In addition, Tesla has stated that it plans to start accepting Bitcoin as a form of payment for their products in the near future.
"Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt."
In the past, as well as recently, Tesla CEO Elon Musk has repeatedly demonstrated interest in Bitcoin, and even expressed interest in Tesla acquiring digital currency. Apparently, after a more detailed study, the company decided to increase the profit on its cash, which is not required to maintain adequate operational liquidity, and acquired a sizable Bitcoin position.
© 2021, Eva Fox. All rights reserved.
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
