Bitcoin (BTC) Shoots 4.5% As Tesla Starts Accepting Bitcoin Payments, Won’t Convert to Cash

Bhushan Akolkar
March 24, 2021
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World’s largest automobile company Tesla is once again here to rescue Bitcoin (BTC) from falling further. An hour back, Tesla boss Elon Musk tweeted that the company has started accepting Bitcoin payments against the purchase of any Tesla model.

The announcement was enough to push Bitcoin’s (BTC) price 4% northwards. As of writing this story, the BTC price is trading at $56,139 with a market cap of $1.047 billion. Elon Musk said that Tesla will operate the Bitcoin nodes directly while using its internal; and open-source software. Besides, another bullish indicator is that the company plans to retain its Bitcoins received as payments instead of converting them to cash.

This shows how bullish Tesla is on its Bitcoin (BTC) bet and the future of the world’s largest cryptocurrency. Last month in mid-February 2021, Tesla made the official announcement of purchasing $1.5 billion worth of Bitcoins at the price of around $33K.

Tesla Leading the Corporate Bitcoin Movement

Tesla’s entry into the Bitcoin market has also sparked major corporate interest as big companies are mulling to move part of its balance sheet to BTC. Interestingly, Tesla has already made more than $1 billion in returns from its Bitcoin bet in a month’s time, which is more than the company’s total earnings for the last year.

The company has already said that it updated its 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. 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,” it added.

However, Musk’s love with Bitcoin (BTC) hasn’t been to the moon as expected. A few weeks back, Musk called Bitcoin “as bs (bull-shit) as fiat”. Defending Tesla’s Bitcoin investments, Musk said that it was the collective decision of his entire board of directors. Musk has been vehemently supporting the meme-cryptocurrency Dogecoin for a long-time. Recently, Musk also tried his hands at the NFT craze, but later dropped-off the idea.

As Tesla provides Bitcoin the reason to once again resume the northward journey, here are some on-chain fundamentals supporting the bullish momentum ahead.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.