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Bitcoin Price Hits Record High After Tesla Buys $1.5 Billion Worth

by : Niamh Shackleton on : 08 Feb 2021 13:43
Bitcoin Price Hits Record High After Tesla Buys $1.5 Billion WorthPA Images

Tesla has just bought $1.5 billion worth of bitcoin, sending the cryptocurrency’s price to an all-time high.

The move comes after Tesla founder Elon Musk helped bitcoin’s value skyrocket by 20% last month after putting ‘#bitcoin’ in his Twitter bio.

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It’s since been announced today, February 8, that the car manufacturer has purchased more that $1 billion worth of the cryptocurrency.

Part of an SEC filing by Tesla reads, ‘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.’

Elon MuskPA Images

As per Mashable, it continues:

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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 longterm.

The filing also stated that the company is considering accepting bitcoin as a form of payment for its products in the ‘near future’.

Following the investment from Tesla, bitcoin’s price has hit a record high of $43,000, reported AFP News Agency. 

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The company founded by Musk is following in the footsteps of MicroStrategy, a company which provides business intelligence, mobile software, and cloud-based services, said Mashable. 

In December 2020, MicroStrategy founder, Michael Saylor, tweeted Musk offering bitcoin advice. He wrote to the tech mogul, ‘If you want to do your shareholders a $100 billion favor, convert the $TSLA balance sheet from USD to #BTC. Other firms on the S&P 500 would follow your lead & in time it would grow to become a $1 trillion favor.’

Replying to Musk’s question if such large transactions are even possible, Saylor replied, ‘Yes. I have purchased over $1.3 billion in #BTC in past months & would be happy to share my playbook with you offline – from one rocket scientist to another.’

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Evidently Musk has taken Saylor’s advise on board and made the plunge into the world of bitcoin.

The MicroStrategy founder has since taken to Twitter to congratulate the 49-year-old. Saylor wrote, ‘Congratulations & thank you to @elonmusk & @Tesla on adding #Bitcoin to their balance sheet. The entire world will benefit from this leadership.’

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Niamh Shackleton

Niamh Shackleton is a pint sized person and journalist at UNILAD. After studying Multimedia Journalism at the University of Salford, she did a year at Caters News Agency as a features writer in Birmingham before deciding that Manchester is (arguably) one of the best places in the world, and therefore moved back up north. She's also UNILAD's unofficial crazy animal lady.

Topics: News, Bitcoin, Elon Musk, Now, Technology, Tesla

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Mashable
  1. Mashable

    Tesla bought $1.5 billion worth of Bitcoin