Tesla buys $1.5 billion worth of Bitcoin and considers gold

The price of Bitcoin jumped more than 10% on Monday, after Tesla announced that it bought $1.5 billion worth of Bitcoin. The price of Bitcoin surged to a new all-time high of $43,000. In the latest Investment Policy From the company, we read that Elon Musk is also considering investing in physical gold and gold ETFs.

With gold and crypto, the company wants to increase the return on its cash position. Tesla not only has a substantial position in Bitcoin, it also wants to accept the virtual currency as a means of payment. Below is the relevant passage from the document.

"In January 2021, we updated our investment policy to give ourselves more flexibility to further diversify and maximize the return on our cash that we do not need for operational tasks. As part of the policy, which has been duly approved by the Audit Committee of our Board of Directors, we may invest a portion of our cash position in certain alternative investments, including digital assets, gold bars, gold funds and other assets as specified in the future.

Subsequently, within the framework of this policy, we have $1.5 billion invested in Bitcoin and we may acquire and hold digital assets from time to time or on a long-term basis. In addition, we expect to accept Bitcoin as a form of payment for our products in the near future, subject to applicable law and initially on a limited basis. Bitcoin which we may or may not liquidate upon receipt."

Bitcoin

Recently, Elon Musk also managed to move the market for virtual currencies by adding the word Bitcoin to his twitter account with 46 million followers. Later, the richest man in the world removed the word Bitcoin from his profile. Elon Musk has been sending out several messages about cryptocurrencies lately. He also spoke positively about the virtual currency in an interview earlier this month.

Tesla gets into Bitcoin for $1.5 billion, price of the virtual currency shoots to record high (Source: Bloomberg)

The image above this article was taken from QuoteInspector and is freely available under the Creative Commons license.

This contribution comes from Geotrendlines