Tesla, the leading electric carmaker, has announced the purchase of Bitcoin worth $1.5 billion. This was made known through a SEC filing where the firm also stated that it could someday accept the leading crypto asset as a payment method for its cars though it noted that there is still need for some clarification concerning regulations surrounding such payments.
According to the filing, the autonomous car maker said that it had upgraded its investment policy to give the firm more wiggle room to invest in other assets that would give it an opportunity to “maximize returns on cash that is not required to maintain adequate operating liquidity.” This means that the carmaker would now be able to put “cash into alternative reserve assets” like “digital assets, gold bullion, gold exchange-traded funds and other assets” that would be specified in the future.
It is this new development that has given the firm the impetus to invest over a billion dollar in the crypto asset which it says could “acquire and hold” from “time to time or long-term.” This provides the firm enough room to participate in the burgeoning crypto industry and also use its fiat reserve for whatever it chooses to do.
Bitcoin Price Surges, Reaches new ATH
Immediately news broke out about the purchase of the leading crypto asset by Tesla, the value of the leading crypto asset reached a new all-time high of $43,730 according to available data from Coinmarketcap.
The value of the crypto asset had gone on an incredible bull run earlier in the year that resulted in it breaking the $40,000 barrier and reaching as high as $42,000. However, the asset witnessed a decline in its price reaching as low as $28,000 before the value of the crypto king began a recent ascent that has now culminated in this new high.
Institutional investors have also continued their purchase of BTC and the recent entrance of Tesla into the fold increases the numbers of institutions investing in the market.