Electric car maker Tesla announced that they have done an investment of $1.5 billion in Bitcoin, which makes it a huge investment by a major corporation into the most famous cryptocurrency.
Additionally, the organization also noted in a filing with the US Securities and Exchange Commission that going ahead, it plans on accepting the currency digitally as an option to pay for the products offered by them.
Right after the announcement by Tesla, the Bitcoin rate reached higher and the $45,000 mark was seen for the first time.
Why did the company invest in Bitcoin?
In the regular filing, Tesla had stated that the investment policy has been updated in January 2021 to become more flexible in regards to maximizing and diversifying returns on its actual cash reserve.
As part of the strategy, the manufacturer of American EV stated that it would invest in some kind of alternative asset options like a gold exchange, digital assets, and buying of gold bullion-traded funds among others.
“After that, we invested about $1.50 billion in Bitcoin remaining under this policy and might hold and acquire digital assets for long-term or time-to-time.
Moreover, we are considering accepting Bitcoin as a payment method for different products in the coming future, initially for a limited time and subject to the laws applied, which may or might not liquidate at the time of receipt,” stated Tesla in its regulatory filing.
The charismatic boss Elon Mask is on the poster of zero-emission mobility. He was also the advocate of getting unconventional innovations and approaches into businesses. The investment of $1.50 billion made by TSLA stock in Bitcoin reflects that strategy.
Also, if one get-in deep, Tesla’s annual report of 2020 indicates the major investment of EV in Bitcoin. After releasing the annual report, several tweets were posted by Elon Musk related to cryptocurrencies which include Bitcoin that most of the time helped to fuel the rally. Therefore, there was always an indication.
What investment opportunities are presented by Bitcoin?
The initial advocates of Bitcoin don’t think about using it as an asset, but with the exchanges where it could be sold and purchased easily, the currency became one. The approach might not be similar, traditional investment experts have also cautioned against Bitcoin as an investment.
What’s the major impact?
With so much investment in Bitcoin by Tesla, no doubt, it will impact the investment decision of corporations and people in the future. If any other individual had decided to invest in Bitcoin, it wouldn’t have been the big news. But if a wealthy man like Elon Musk does this, it is stated as the headline globally.
The Bitcoin investment by Tesla has got the red flags about the social media activities of Musk on cryptocurrencies.
Are other organizations doing Bitcoin investment or accepting cryptocurrencies as an option to pay?
Now, it has been expected that various other companies will add the payment method to their respective balance sheets which will make Bitcoin the center of attraction and the value will increase.
