Tesla Buys $1.5 Billion in Bitcoin

Tesla Inc. on Monday said it bought $1.5 billion in bitcoin, a purchase that comes after Chief Executive Elon Musk has promoted the cryptocurrency and other digital-currency alternatives on Twitter. The electric-vehicle company also said it expects to start accepting bitcoin as payment for its products soon. Bitcoin prices jumped more than 10% after the announcement, according to cryptocurrency research and news site CoinDesk. Tesla disclosed the bitcoin purchase in its latest annual report filed on Monday, saying the move aims to provide “flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity.” The policy change also enables Tesla to invest cash in gold bullion and gold exchange-traded funds among other assets. “We believe our bitcoin holdings are highly liquid,” Tesla said. The purchase came after a board committee approved changes to a company policy on investments. Mr. Musk has shown…

Read the original article here

IF YOU LIKED THIS ARTICLE CLICK SHARE