Tech billionaire Elon Musk‘s electric vehicle company Tesla has invested $1.5 billion (Rs 10,935 Cr approx) in the bitcoin cryptocurrency, according to its annual 10-K report filed with the US Securities and Exchange Commission (SEC). Also Read - Panasonic plans to mass produce next-gen batteries for Tesla in 2023, suggests report
This has led to the crypto reaching an all-time high valuation as Tesla has become the largest company to back a cryptocurrency that’s been under the radar for a while. Also Read - Indian states invite Elon Musk to set up Tesla factory, but is it feasible?
Bitcoin for Tesla cars
Tesla CEO Elon Musk said that it will also “begin accepting bitcoin as a form of payment for our products in the near future.” Also Read - Tesla is in a 'weird stalemate situation' with the Indian govt: Report
Thanks to a 15 percent jump, Bitcoin went north of the $40,000 valuation for the first time as Tesla made the disclosure in a regulatory filing. The company said that it would be accepting the digital token as payment as a form of payment for all of its products.
The announcement doesn’t come as a surprise as Tesla customers have been requesting the company to accept bitcoin as a form of payment in exchange for its cars.
Bright future for Bitcoin?
“In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximise returns on our cash that is not required to maintain adequate operating liquidity,” Tesla said in the report.
“Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy. Moreover, 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,” it added.
Elon Musk has shown interest in the controversial crypto before as well and Tesla’s investment in Bitcoin will lend a lot of credibility to the future and security of the cryptocurrency that has been criticized for facilitating money laundering and funding crime and terrorism across the globe. The crypto has also been criticized due to the inability of banks to regulate it.
Musk has also been sending tweets in support of Dogecoin over the past week, leading to a rise in the cryptocurrency’s value.
–with inputs from IANS.