Tesla purchased $1.5 billion Bitcoin — reaches new all time high

According to the company’s annual report filed with the SEC, Tesla said it has purchased $1.5 billion in Bitcoin which has sent its price to new all time highs.

The company disclosed in its annual report that it has purchased the cryptocurrency as an initiative to invest in alternative assets like digital currencies and gold bullion. The car company also expects to accept cryptocurrencies “in the near future”.

Tesla said it held $19.4 billion in cash and equivalents as of December 31, 2020. That would roughly equate Bitcoin to be 7.7% of cash reserves. This investment is a significant portion as most companies have been investing less than 5%.

Elon Musk is known for promoting cryptocurrencies in his twitter which has over 46 million followers. Two weeks ago he added the hashtag #bitcoin to his twitter bio in a move that helped to briefly push up the price of cryptocurrency by as much as 20%. Two days after that he said in the social media chat site, Clubhouse: “I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin”.

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