The Musk effect: Bitcoin surges to $43k following $1.5 billion purchase by Telsa
Elon Musk is not just hyping Bitcoin. The world’s richest man is putting his money where his mouth is. A filing with the SEC has revealed that Musk’s Tesla invested $1.5 billion into Bitcoin in January.
As news of the purchase trickled in, the price of Bitcoin suddenly spike to over $43,000, setting a new all-time high of $43,457.86, as of press time.
Beyond investing in Bitcoin, Tesla also revealed that it would invest in digital assets from time to time, and might open its doors to bitcoin payments in the “near future.” An excerpt from the filing reads:
In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future. 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. Moreover, we expect to begin accepting bitcoin 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 liquidate upon receipt.
This doesn’t come as a surprise considering the fact that Musk has in several occasions mentioned Bitcoin in his tweets. A few days ago, he changed his Twitter bio to “bitcoin”.