Tesla Buys $1.5 Billion of Bitcoin
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Tesla made a bold move recently by investing $1.5 billion into Bitcoin. The company also announced that customers will soon be able to pay for their vehicles with the cryptocurrency. The news comes from a filing with the Securities and Exchange Commission (SEC) in late 2020. As expected, critics are a bit upset, but as an investor, I’m excited to see Tesla make this move.
Tesla Will Accept Bitcoin As Payments In The Future
In the filing, Tesla stated, “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.”
Also, this puts Tesla in a unique position in that it will be the first automaker to allow customers to buy a product with Bitcoins, or any cryptocurrency. For those who are up in arms about it, if you really want Tesla to succeed, then note that it’s helpful for Tesla to be able to take all types of payments — whether cash, credit card, PayPal, or Bitcoin.
Investing in Bitcoin
In the filing, Tesla noted that it updated its investment policy to provide the company with more flexibility. This is to further diversify and maximize returns on its cash that isn’t required to maintain adequate operating liquidity.
The policy, which was approved by the Audit Committee of Tesla’s Board of Directors, notes that Tesla may invest a portion of this cash in alternative reserve assets. These include:
- Digital assets.
- Gold bullion.
- Gold exchange-traded funds.
- Other assets as specified in the future.
I think it is a sign of the times that Tesla made this major investment. Owning so much Bitcoin, and simply putting the company’s notable brand name behind it, has already seemingly helped to push the value of the cryptocurrency up higher. Those of us who have some Bitcoin (whether partial coins or whole coins) have probably benefited and will continue to benefit from Tesla’s investment, as Tesla is further legitimizing and bringing positive attention to Bitcoin.
In the end, if Bitcoin rises in value, or rises more than other investment options, Tesla and its shareholders win. The debate is about whether or not that will happen, and Elon Musk and crew clearly concluded that Bitcoin has a bright future.
Featured image © Bitcoin
Chip in a few dollars a month to help support independent cleantech coverage that helps to accelerate the cleantech revolution!
Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Sign up for our daily newsletter for 15 new cleantech stories a day. Or sign up for our weekly one if daily is too frequent.
CleanTechnica uses affiliate links. See our policy here.
CleanTechnica's Comment Policy
