Bitcoin’s price increased and Tesla advanced on Monday after the car maker said in an SEC filing that it had bought $1.5 billion worth of Bitcoin.
“In January of this year, we changed our policy to give more freedom to diversify and maximize the returns on our savings which are not needed to maintain operating liquidity,” Tesla said in the document.
“As part of this change, we can now invest a part of our cash in alternative assets including digital assets, gold, gold ETFs and other assets as detailed in the future,” the company said.
And the big part, “After this, we invested a total of $1.5 billion in bitcoin and might acquire and hold digital assets for the long-term.
“We expect to start accepting bitcoin as payment in the near future, according to certain laws and starting on a limited basis, the bitcoin we receive we might not be sold upon receipt.”
Bitcoin previously was priced at $42,889, up 12%. Tesla was at $861.54, up 1.1%.
Only 10 days ago, bitcoin increased 19% after a tweet from Tesla CEO Elon Musk where he simply said one word: “bitcoin.” That proves there is a frenzied desire for bitcoin and anything related to Tesla or Musk.
Tesla has claimed the title of the world’s seventh largest company with a market cap of $808 billion.
It is only topped by Alphabet, Amazon, Microsoft and Apple.