On Monday, Tesla Inc. announced buying $1.5 B in Bitcoin. The company wrote about the purchase in its 2020 annual report. Within a few hours, the price of the cryptocurrency grew by 22%, setting a new all-time high.
American electric-automobile manufacturer directed by Elon Musk said it will probably continue to invest in digital currency and other “alternative reserve assets.” Going forward, the company stated it would allow Bitcoin as a payment method.
According to the paper filed with the SEC, Tesla informed about the decision of moving about 8% of its reserves into Bitcoin. The CEO of Tesla, Elon Musk occasionally tweets about the crypto assets Bitcoin and Dogecoin. Two weeks ago, he added the word Bitcoin to his Twitter account. However, a few days later, he removed it.
Many other major companies had invested in Bitcoin earlier. Among them are Micro Strategy, Square, Galaxy Digital, and more. Analysts assume that the next investment may come from Apple.