Tesla Buys $1.5B in Bitcoin Sending Prices Soaring to New All-Time High of $47,500

By  //  February 9, 2021

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You may soon be able to buy a Tesla with bitcoin

Tesla will begin accepting bitcoin, the electric automaker disclosed in an SEC Filing on Monday, citing efforts to “further diversify and maximize returns on our cash” and in a first, may soon accept it as payment for its cars.

(FoxBusiness.com) – Tesla will begin accepting bitcoin, the electric automaker disclosed in an SEC Filing on Monday, citing efforts to “further diversify and maximize returns on our cash” and in a first, may soon accept it as payment for its cars.

“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,” the filing read.

“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. 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.”

The move sent bitcoin higher, trading above the $42,000 level around 8 AM ET, a new all-time high. This year the cryptocurrency has gained over 33%.

Wedbush analyst Dan Ives, in a note, said “Musk and Tesla are diving into the deep end of the pool of bitcoin and crypto” and that could mean more gains for Tesla shares.

“From a stock perspective, as we have seen with Microstrategy (and Saylor), this move could put more momentum into shares of Tesla as more investors start to value the company’s bitcoin/crypto exposure as part of the overall valuation,” wrote Ives.

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