Elon Musk’s Tesla Inc. said it acquired $ 1.5 billion in bitcoin in January and could accept the world’s number one digital asset for payment in the future. Tesla TSLA, + 2.30% disclosed the purchase in a regulatory filing with the Securities and Exchange Commission on Monday, which helped boost bitcoin prices BTCUSD, + 13.15% to around $ 44,203, a gain of more than 13% in early trading on CoinDesk.
“In January 2021, we updated our investment policy to give us more flexibility to further diversify and maximize returns on our cash that are not required to maintain adequate operating liquidity,” Tesla said in a 10-K filing with the regulator of US markets “In addition, we expect to begin accepting bitcoins 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 settle upon receipt,” the presentation continued. The move comes as Musk has recently been a more vocal advocate for digital assets on his social platforms. In late January, Musk tagged the cryptocurrency in his Twitter bio, then added the hashtag #bitcoin to his Twitter bio, then tweeted, “In hindsight, it was inevitable.” And earlier this month, Musk tweeted “doge” without further comment, referring to the digital asset meme asset dogecoin. Tesla becomes one of the largest companies to invest in bitcoins and allow payments through the digital asset that was only created in 2009. “While many on the street have discussed the prospects of this move for Tesla, the news of this Tomorrow formalizes Musk’s strategy and Tesla dives to the bottom of the bitcoin and cryptocurrency pool, ”Wedbush analyst Dan Ives wrote in a research note Monday. However, other top companies have started to make headlines focused on their interest in bitcoins and making virtual assets a part of their balance sheets. In 2020, software company MicroStrategy MSTR, + 17.62% said they took a leap of faith by investing in bitcoin in September 2020, collecting 21,454 bitcoins, worth $ 250 million at the time, placing the coin as an asset backup. for the entity, according to an Aug. 11 announcement, CoinTelegraph reported. Microstrategy’s move has raised the question of whether other companies might consider putting some of their reserve assets in bitcoin. “Ultimately, investors and other industry watchers will be watching this closely to see whether other corporations are following Tesla’s lead on this crypto path or, on the other hand, are still a few contained names making this strategic leap around. of bitcoin, “Ives wrote. . A record rally in bitcoin has been largely attributed to interest from institutional investors and corporations. PayPal Holdings Inc. PYPL, + 4.42% in November, opened its cryptocurrency platform to all US customers after conducting a narrower launch. Bitcoin’s price gains are also drawing attention to the asset, investment experts say, as a rise in the Dow Jones Industrial Average DJIA, + 0.60% and the S&P 500 SPX Index, + 0.55% has participants the market concerned about high valuations in stocks. in the context of interest rates close to 0%. Bitcoin prices are up 50% so far in 2021. Meanwhile, the S&P 500 has gained 3.5%, the Dow has gained 1.8% so far this year, while the Nasdaq Tech-laden Composite Index COMP was up 7.5%. in so far this year. GC00 gold prices, + 1.19% are down 3.5% year-to-date. Several high-profile Wall Street investors, including Stanley Druckenmiller and Paul Tudor Jones, have embraced Bitcoin. Famed investor Bill Miller, founder of Miller Value Partners, in a letter to clients posted earlier this month on the company’s website, reaffirmed his bullish outlook on bitcoin.