Tesla Invests $1.5B Worth of Bitcoin, SEC Filing Shows


Elon Musk’s Tesla invested $ 1.5 billion in Bitcoin, according to its most recent filing with the US Securities and Exchange Commission.

The American automotive giant reported that it changed its investment policy in January 2021 to “further diversify and maximize” returns on cash not needed for operating liquidity. She later applied for approval from her “Audit Committee” to invest those replacement dollars in alternative reserves. The strategy led them to Bitcoin, the most valuable decentralized cryptocurrency in the world.

“We have invested a total of $ 1.5 billion in Bitcoin under this policy and may acquire and hold digital assets from time to time or over the long term,” the Tesla filing confirmed.

The company also announced that it plans to allocate more of its cash reserves to Bitcoin. If necessary, the cryptocurrency may also be accepted as a means of payment for your products in the future, provided that these remain within their legal limits before the call.

The filing came after weeks of tension over Mr. Musk’s cryptic messages on Bitcoin. On January 29, the Tesla founder changed his Twitter biography to the word “Bitcoin”, followed by a tweet saying “In hindsight it had to happen”. Mr Musk later said on an online forum that he was too late to buy bitcoin.

Bitcoin meets ATH

Each of his Bitcoin mentions drove the market into a buying frenzy. For example, the BTC / USD exchange rate rose more than 15 percent on January 22nd. The euphoria returned on February 3 after Mr Musk’s pro-Bitcoin comments, sending prices up as much as 6.23 percent.

Bitcoin hits a new record high after Tesla’s announcement. Source: BTCUSD on TradingView.com Bitcoin hits a new record high after Tesla’s announcement. Source: BTCUSD on TradingView.com

At the start of the new week, Tesla’s SEC filing repeated the BTC / USD pumping scenario. The cryptocurrency broke its previous record high of $ 42,000 and formed a new one at $ 43,823. While it followed a modest correction, traders on social media made bullish comments on how Tesla’s exposure to BTC would keep its prices high.

“I hope everyone is ready for a $ 50,000 bitcoin,” said Alex Krúger, an independent macro analyst.

Tesla’s decision led it to join the ranks of other large companies who either added Bitcoin to their financial reserves or built its services into their mainstream offerings. These include Nasdaq-listed MicroStrategy, payment firm Square, and billionaire hedge fund managers like Paul Tudor Jones and Stan Druckermiller.