UNITED STATES: On Monday, American business tycoon and electric car maker Tesla announced a massive investment of $1.5 billion in bitcoin. In a filing with the US Securities and Exchange Commission (SEC) the company also mentioned that in the future it plans to start accepting bitcoin as a payment option for its products.
As soon as Tesla made this announcement, the rate of bitcoin has skyrocketed to an all-time high, crossing the $44,000-mark for the first time. Tesla’s investment is the biggest investment by a mainstream corporation into the most popular cryptocurrency.
The company stated that they updated its investment policy last month to be more flexible in further diversifying and maximizing returns on its idle cash by investing in certain digital assets, gold bullion, gold exchange-traded funds, and other reserve assets.
Bitcoin presents investment opportunities with easy exchanging. However, the market participants say that the huge volatility in the price of bitcoin without any key reason is a factor retail investors should be cautious about.
Soon after the announcement, CEO Elon Musk changed his Twitter bio to ‘#bitcoin’, after which there was a shooting surge in the price. Recently, Musk has been credited for increasing the prices of cryptocurrencies like bitcoin and ‘dogecoin’ by posting positive messages on Twitter that have encouraged more people to buy the digital currencies.
Read Also: Elon Musk’s Tesla Officially Enters India
While Tesla’s investment has been the biggest investment in bitcoin by a consumer-facing company, it does not hold the largest quantity of the share for a single entity.
US-based company MicroStrategy has around 71,079 bitcoins in its holdings, compared to Tesla’s 43,053 bitcoins. US-based tech firm Square holds 4,709 bitcoins. Apart from Tesla’s recent addition to firms that accept bitcoin as payments, other companies that are a part of this includes, Microsoft, telecommunications giant AT&T, and other companies like Pizza Hut, Subway, that accept bitcoin as payments in some of their branches in the US and Venezuela.