Bitcoin Hits New ATH Above $42,900 As Tesla Announces $1.5 Billion BTC Purchase

By Bhushan Akolkar
February 8, 2021 Updated February 8, 2021
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Bitcoin gets the rocket fuel as BTC smashes past $42,600 levels upon Tesla announcing its $1.5 Billion Bitcoin purchase. After fueling the DOGE rally over the weekend, its Elon Musk once again that has taken the Bitcoin community by storm.

The world’s richest man has endorsed Bitcoin quite a few times over the last few weeks. A week back, Elon Musk also changed his Twitter handle to #bitcoin raising speculation of his entry into Bitcoin.

In its recent SEC filing, Tesla has disclosed its latest Bitcoin purchase. The filing states:

“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”.

The Bitcoin Price is 9.84% high as of writing this story trading at $42,938 levels with a market cap of $791 billion. Tesla’s entry into Bitcoin space has helped to break the resistance ceiling of the previous ATH and once again enter into the price discovery mode.

Tesla to Accept Bitcoin Payments on Car Purchases

The great news is that in addition to adding Bitcoin to its reserves, Tesla is also planning to accept payments in BTC against its car sales. The filing states:

“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.”

Interestingly, it turns out that SpaceX (owned by Elon Musk) had attended the MicroStrategy World 2021 Conference last week hosted by Michael Saylor. Tesla is the first among the top-ten companies in the world to announce its holdings in Bitcoin. It looks like Michael Saylor has been successful in convincing Elon Musk to put the company’s additional cash reserves in BTC.

The question is who do you think will be the next among the top-ten global companies to announce its exposure to Bitcoin? Leave your comments below.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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