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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.

© Reuters.

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.

Latest comments

I'm new.Any thoughts?
Tesla the most speculation ever...
Tesla is the corporate version of the Fed.
when news is good look for the opposite
you mean when the news is good than you should look for a sell?
More like confidence in fiat currecies is on the decline...
Another message to con small fishes. Why he need to announce this news right now when Bitcoin has done a big run. Just because he want small buyer who are new in market will buy now and make the price higher so that he can sell his and earn profit. Its not a good time to buy...
I guess u dont know much about Bitcoin
They think that they might as well ride some of his happy train on the roof if they cannot sit in first class. So - be prepared for a wave of investors into BTC right or wrong. Exactly, and when enough passengers have joined him on the train he will step off at the last minute, and bid them "Bon voyage" from the platform for a safe journey.
at least now we do know who Satoshi Nakomoto is
Could be good or bad. Likely to raise some issues.its clearly gambling with the company assets. Trying to be clever playing the market with your own money is one thing. Using such an large amount of company assets is something different. Potentially dangerous precedent.Taken with other events recently its possible we may be around the top of this bull market.
Luv u Mr Musk!
ELon.. you will be this centuries hero
Love u Elon!!
Finally. Love you Elon
lolz
Looks like Mr. Musk is bringing bitcoin to the Moon next.
Elon goes brrrrrr   Until he doesn't. I think he can go brrrrr longer than I can stay rational..
boom 💥
this is wrong. Elon bought Dodgecoin
Elon and  Tesla are two seperate entities
well in mastermind
Tesla bought bitcoin. Keep up
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