Bitcoin (BTC) Skyrockets Above $44,000 As Elon Musk’s Tesla Announces $1.5 Bitcoin Purchase
It all fireworks in the Bitcoin community today as Bitcoin has hit a new all-time high smashing past $44,000 levels breaking all previous resistances. The recent Bitcoin price comes as the world’s largest automobile giant Tesla announces $1.5 billion worth of Bitcoin purchases.
In its recent filing with the U.S. Securities and Exchange Commission (SEC), the company said that the latest Bitcoin purchase comes as part of its plans to diversify its cash reserves.
The SEC filing reads: “In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future. Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term”.
Going beyond and further, Tesla has said that it will be accepting Bitcoin payments against its car sales. The filing notes: “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”.
Tesla’s entry to the Bitcoin market it one of the biggest catalyst for Bitcoin investors worldwide. This makes Tesla Inc (NASDAQ: TSLA) as the first among the top-ten crypto companies to gain exposure to Bitcoin.
Tesla CEO Elon Musk has been vocal about his support to Bitcoin in the past as well. Over a week back, Elon Musk updated his Twitter bio to #bitcoin further adding that “it was inevitable”.
But Bitcoin is not the only cryptocurrency that Elon Musk has been supporting. Over the last 24 hours, Elon Musk has made multiple tweets on the meme cryptocurrency Dogecoin (DOGE) which hit an all-time high of $0.85 earlier today, as per data on WorldCoinIndex.
The meme cryptocurrency based on the Shiba Imo dog breed has surged rapidly over the last few weeks following Musk’s continuous support. The DOGE price has multiplied 18x so far in 2021 with a whopping 1700% gains.
Well, coming back to the Tesla news, we hope more such global giants to put their resave cash in Bitcoin in coming months.