It seems that the CEO of Tesla and SpaceX, Elon Musk was true to his word when he openly declared support of bitcoin on his Twitter bio and made statements about the leading cryptocurrency becoming on par with conventional finance methods. Through an annual report filing with the United States Securities Exchange Commission (SEC), Tesla has revealed that they are open to buy $1.5 billion worth of bitcoin. In minutes as the news launched on various news platforms, the leading cryptocurrency surged from around $39,000 to over $41,000 before surging to its record all-time high of $44,850 according to price reports by Cointelegraph.
According to the leading tech firm in the filing under risks related to their operations, they stated that they “hold and may acquire digital assets that may be subject to volatile market prices, impairment and unique risks of loss”. Expantiating on this, the firm stated further,
“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”.
Going on, the document further states, “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.”
Tesla’s action is similar to that of other tech firms like Micro Strategy and while commendable also forebodes a good future for the bitcoin community. Such open and outright support is going to score bitcoin a lot of points in being recognized in the financial space.
What are your takes on these upward turn of events for BTC?