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Tesla invests $1.5 billion into Bitcoin, plans to accept BTC payments

Tesla, a tech company led by well-known crypto enthusiast Elon Musk, has bought $1.5 billion worth of Bitcoin and plans to add support for BTC as a form of payment in the near future, according to its filing with the US Securities and Exchange Commission (SEC) published today.

Tesla invests $1.5 billion into Bitcoin, plans to accept BTC payments

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Tesla, a tech company led by well-known crypto enthusiast Elon Musk, has bought $1.5 billion worth of Bitcoin and plans to add support for BTC as a form of payment in the near future, according to its filing with the US Securities and Exchange Commission (SEC) published today.

โ€œThereafter, we invested an aggregate $1.50 billion in bitcoin under this policy,โ€ revealed Teslaโ€™s Form 10-K.

The company explained that its investment policy was updated in January 2021 to provide โ€œmore flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity.โ€ As part of this revised policy, Tesla said that it โ€œmay invest a portion of such cash in certain specified alternative reserve assets.โ€

Additionally, the company expects to begin accepting Bitcoin as payment for its products in the future.

โ€œMoreover, 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,โ€ the document noted.

At press time, Bitcoin is trading at around $42,600, up 9.2% on the day.

Bitcoin price tesla

However, Elon Musk has recently demonstrated that he has a notable influence on the crypto market. Recently, when Musk changed his bio section on Twitter to include just one wordโ€”โ€Bitcoinโ€โ€”the BTCโ€™s price surged by nearly 20%.

In another instance, a single tweet from him with the word โ€œDogeโ€ was enough to pump โ€œmeme cryptocurrencyโ€ Dogecoin by nearly 80% last week. Even today, another one of Muskโ€™s tweets catalyzed DOGEโ€™s surge by 50%.

Speaking to CryptoSlate, Konstantin Anissimov, executive director of crypto exchange CEX.IO, noted that the market has reacted to the news lightning-fast, showing โ€œhow great the growth potential of this asset is.โ€

โ€œEverything goes to the fact that the upward trend in BTC/USD will be continued by a new wave of growth, which in February may raise this trading pair to $50,000,โ€ Anissimov told CryptoSlate, adding, โ€œBut we consider $48,051 as the closest target mark. This is an approximate figure based on operational technical analysis. Therefore, if Tesla is followed by a new wave of investing in bitcoin from the corporate segment, this level can be overcome very quickly.โ€

While it is commendable that Musk has literally put his money where his mouth is, couldnโ€™t his unprecedented influence on the crypto market now be perceived as a conflict of interest?

The article was updated to include additional details.

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