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Tesla invests 1.5 bln in Bitcoin, driving price up

Monday 8 February 2021 15:00 CET | News

Bitcoin has surged roughly 8% on 8 February amid news that Tesla invested USD 1.5 billion in the cryptocurrency and may even start accepting it as payment for its products.

Bitcoin crossed the USD 43,000 at one point in the day. In a filing with the SEC, Tesla said it has ‘invested an aggregate USD 1.5 billion in Bitcoin,’ and ‘may acquire and hold digital assets from time to time or long-term.’

It added that it expects to ‘begin accepting Bitcoin as a form of payment for its products in the near future, subject to applicable laws and initially on a limited basis, which it may or may not liquidate upon receipt.’

The move highlights the power that Elon Musk has in shaping price action and moving markets. The situation will also raise questions for fund managers who may not want to invest in a company with this kind of risk on its balance sheet, as Bitcoin is highly volatile. Tesla is now starting to take on big FX risk, and while this may not worry a lot of investors, some conservative types might be concerned.

 


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Keywords: Tesla, cryptocurrency, Bitcoin, musk, investment, digital assets, crypto assets, fx risk, tsla, Bitcoin payment
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: World
This article is part of category

Blockchain & Cryptocurrencies