In an SEC filing today, Tesla revealed that it has earned $1.5 billion in the popular cryptocurrency bitcoin. Moreover, the company noted that it might also accept bitcoin as a form of payment for its vehicles in the future, although this regulation leaves some regulatory uncertainty in the vicinity. As the news spread, the price of bitcoin instantly rose by about 7% to more than $40,000 per currency.
Tesla had previously telegraphed that it had an interest in cryptocurrency, but notably buying such large blocks of currency. In the filing, Tesla wrote earlier this year that it had “updated its investment policy to provide more flexibility for the legitimacy of its cash and to maximize returns, which is not necessary to maintain adequate operating liquidity.” It adds that it has the option to hold cash in “certain alternative reserve assets” which includes “digital assets, gold bullets, gold exchange-traded funds and other assets mentioned in the future.”
Under the banner, the company has “invested a total of $1.50 billion in bitcoin”, which continues to say that the well-known electric car company “can acquire and retain digital assets from time to time or in the long run.”
This is a huge amount of wiggle room for Tesla to do whatever he wants with cash and the crypto market. The company did not, however, attach its news drop, expecting companies to start accepting bitcoin as a form of payment for [its] products on a limited basis, which [it] is expected to be “in the near future under applicable law and under the initial law”. May or may not be liquid after receipt.”
Tesla CEO Elon Musk has made waves in recent days by pumping a stupid cryptocurrency joke called Dogecoin; this is some more material. Tesla is choosing bitcoin as its preferred cryptocurrency and helping to further cement the blockchain as the most well-known in the world. In addition, it could take bitcoin-denominated transactions in the future to help bitcoin retain both value and exchange, although we probably repeat ourselves. It is noteworthy that Musk himself, using his social presence, has in the past personally sent higher bitcoin prices, changing his bio with only a single word, before returning his price later this month. The car company then spent three paragraphs saying its choice was risky. What if it is a summary then the joke is not entertaining again?