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Bitcoin Surges as Tesla Confirms It Bought $1.5 Billion to Diversify Reserves

Published 08/02/2021, 12:50
Updated 08/02/2021, 12:57
© Reuters.
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By Geoffrey Smith

Investing.com -- The price of Bitcoin surged to a new record high over $41,700 after Tesla (NASDAQ:TSLA) confirmed it had bought $1.5 billion of the digital currency on Monday.

The electric car company said it had made its decision “to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity,” in line with a recent change to its investment policy.

“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,” Tesla said in a statement. “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.”

By 7:55 AM ET, Bitcoin was quoted at $42,539, up nearly 10% from its level late Sunday and triple where it was in October.

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