Bitcoin’s record-breaking rally has climbed to a new height after Tesla, the largest car manufacturer, bought $1.5 billion worth of the cryptocurrency.
Elon Musk’s Tesla announced the purchase of Bitcoin in a filing with the Securities and Exchange Commission on Monday, February 8. The company said it acquired the bitcoin for “more flexibility to further diversify and maximize returns on our cash.” Furthermore, the company also said it will start accepting payments in the cryptocurrency in exchange for its products “subject to applicable laws and initially on a limited basis.”
Bitcoin, the largest cryptocurrency, hits a new record high of over $43,000 surging by at least 11% after the Tesla news.
Bitcoin’s impressive rally is not looking to rest. Only on January 8, the cryptocurrency had recorded a peak price of $41,962. Before that, it surged above $34,800 on January 3, 2021, and above $23,000 on December 17, 2020.
Tesla’s purchase of bitcoin is viewed as an investment of a significant percentage of its cash in the investment. According to its recent filing, the electric car company had more than $19 billion in cash and cash equivalents on hand at the end of last year. Tesla had previously expressed its interest in the cryptocurrency and now has stirred up the market with a huge purchase.
Tesla’s CEO Elon Musk’s recent tweets have been credited for the rise in the prices of cryptocurrencies like bitcoin and dogecoin. Two weeks ago, the world’s second-richest man – Musk added “#bitcoin” to his Twitter profile, which boosted the price of the cryptocurrency by more than 20%. Also, on a chat site – Clubhouse, he said, “I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin.”
Elon Musk, who had recently drawn significant public attention by revealing Neuralink’s plan of implanting computer chips on the human brain by the end of this year, has now earned himself and his company, Tesla, another big headline with the massive purchase of bitcoin.