Elon Musk’s Tesla Inc. stated that it had acquired $1.5 billion in Bitcoin in January and that it could accept payments in the world’s number one digital asset in the future.
The purchase was revealed on Monday in the Securities and Exchange Commission (Securities and Exchange Commission) regulatory documents, which helped push up the price of Bitcoin
To around $44,203, it was up more than 13% in CoinDesk’s early trading.
Tesla stated in its 10-K application to the U.S. market regulator: “In January 2021, we updated our investment policy to provide us with greater flexibility to further diversify and maximize our Cash return, which is not needed to maintain sufficient operational liquidity.”
The document continues: “Furthermore, we hope that in the near future, in accordance with applicable laws and on a limited basis, we will begin to accept Bitcoin as a payment method for our products. After payment is received, we may or may not Liquidation.”
This move is because Musk has recently won greater support for digital assets on his social platform.
Late January Musk Mark Using the cryptocurrency in his Twitter biography, then adding the hashtag #bitcoin to his Twitter resume, and then he wrote on Twitter: “In retrospect, it was inevitable.” At the beginning of this month Musk posted “doge” on Twitter with no further comments, Refers to the digital asset meme asset Dogecoin.
Tesla became one of the larger companies that invested in Bitcoin and allowed payments through digital assets created in 2009.
Wedbush analyst Dan Ives wrote in Monday’s study: “Although many people on Wall Street are discussing the prospects of Tesla’s move, this morning’s news made Musk and Tesla The strategy of jumping into the abyss of Bitcoin and cryptocurrency is formalized.” Attention.
However, other mainstream companies have begun to make headlines, focusing on their interest in Bitcoin and making virtual assets part of their balance sheets.
As early as 2020, the software company MicroStrategy
Said that it invested in Bitcoin in September 2020, thus achieving a leap of faith. According to the announcement on August 11, the token received 21,454 bitcoins, worth 250 million U.S. dollars at the time, and became the entity’s reserve assets. Coin Telegraph Report.
Microstrategy’s move raises the question of whether other companies might consider investing some of their reserve assets in Bitcoin.
Ives wrote: “Ultimately, investors and other industry observers will pay close attention to this to understand whether other companies have followed Tesla’s leadership approach to cryptocurrency, or on the other hand, it is still Are the few names that make Bitcoin strategically leap forward?”.
Bitcoin’s record rise is mainly due to the interest of institutional investors and businesses.PayPal Holdings Limited
After a narrower deployment, its cryptocurrency platform was opened to all US customers last November.
Investment experts said that as the Dow Jones Industrial Average has risen, the rise in the price of Bitcoin is also drawing attention to the asset.
And the S&P 500 Index
Let market participants worry about the overvaluation of stocks when interest rates are around 0%.
So far, the price of Bitcoin has soared by 50% in 2021.At the same time, the S&P 500 has risen 3.5% so far, the Dow Jones Industrial Average has risen 1.8% so far, and the high-tech Nasdaq Composite Index
It is up 7.5% so far this year.Gold price
It has fallen 3.5% so far this year.
Several prominent Wall Street investors including Stanley Druckenmiller and Paul Tudor Jones have accepted Bitcoin. Bill Miller, the famous investor of the founder of Miller Value Partners Letter to customers An article published on the company’s website earlier this month reiterated his optimistic view of Bitcoin.