Tesla announced on Monday that it had bought $ 1.5 billion in bitcoins, according to a document with the SEC.
The company said it bought bitcoin for “more flexibility to diversify and maximize the return on our cash,” according to the document. In addition to the purchase, Tesla said it would also accept bitcoin payments in exchange for its products. This would make Tesla the first major automaker to accept bitcoin as a form of payment.
The change raised immediate questions about CEO Elon Musk’s behavior on Twitter in recent weeks, where he has been credited with raising prices for cryptocurrencies like bitcoin and dogecoin, posting positive messages about them and therefore encouraging more people to buy.
Bitcoin prices rose to new highs on Monday after Tesla’s announcement, reaching a price of at least $ 43,200. Tesla’s shares were up more than 2% in the pre-market. Tesla warned investors about the volatility of bitcoin’s price on its SEC filing.
Tesla’s move on Monday represents an investment of a significant percentage of its money in the investment. The company had more than $ 19 billion in cash and cash equivalents at the end of 2020, according to its most recent record.
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