Elon Musk’s company disclosed one and a half billion investments in bitcoins. The cryptocurrency rate renewed its historical maximum, jumping to $44,000.
Tesla notified the Securities and Exchange Commission (SEC) that it has invested part of the funds in cryptocurrency. Against this background, the bitcoin rate updated its historical maximum and exceeded $44,000.
“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 long-term,” the filing said. The filing added that Tesla expects to begin accepting Bitcoin as payment for its products, including its cars, in the near future.
According to analyst firm Arcane Research, Tesla’s bitcoin reserves account for 43,053 BTC. For comparison, Square’s bitcoin reserves are 4,709 BTC, while MicroStrategy’s reserves in BTC are 71,079.
Guy Hirsch, managing director at eToro, noted that news of Tesla’s investments in bitcoins came just days after the MicroStrategy WorldNow conference aimed at attracting institutional investors to the crypto world. At the event, MicroStrategy CEO Michael Sailor said he expects an avalanche of companies converting their balance sheets into bitcoins.
Last week, Tesla and SpaceX CEO Elon Musk said he saw great potential in bitcoin. In an interview on the Clubhouse Good Time show, Musk stated that bitcoin is on the cusp of mass adoption.
“I think bitcoin is a good thing. I was late to this party, but I am a bitcoin supporter. Bitcoin is really on the verge of getting broad acceptance by conventional finance people,” he said.
Musk said he should have bought digital currency eight years ago.
Against the background of the growth of the bitcoin rate, Ethereum also added in price. ETH rose in price by 9%, again exceeding $1,700.