Tesla announced on Monday that it has invested about $1.5 billion in bitcoin cryptocurrency, revealing its intention to start “accepting bitcoin as a form of payment for our products in the near future.”
In Tesla’s 10-K report with the Securities and Exchange Commission, the electric car manufacturer said that it purchased the bitcoin for “more flexibility to further diversify and maximize returns on our cash.”
The announcement came after Tesla’s CEO Elon Musk started promoting an alternative cryptocurrency in recent weeks, adding the word “bitcoin” to his bio on Twitter which caused the price of the cryptocurrency to partially increase by as much as 20 percent.
“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,” Tesla said in its securities filing. “As part of the policy, we may invest a portion of such cash in certain specified alternative reserve assets.”
“Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy. 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,” the California-based company said in its statement.
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