Tesla Purchases $1.5bn Bitcoin, Pressing Price to New High $44,000

Tesla, an electric car company run by the richest person in the world, Elon Musk, revealed on Monday that it had bought $1.5 billion (£1.1 billion) in bitcoin and said that it could soon accept payment in the popular but controversial cryptocurrency.

The company disclosed the holding of Bitcoin in a filing with the US Securities and Exchange Commission (SEC) on Monday. Tesla said it had "updated our investment policy to give us more flexibility to further diversify and maximize returns" to allow it to invest cash reserves in "alternative reserve assets, including digital assets.

"It stated that it had "invested an aggregate $1.50bn in bitcoin under this strategy since the decision was approved by its audit committee and could acquire and retain digital assets from time to time or long-term. In addition, in the near future, subject to relevant laws and initially on a limited basis, we plan to begin accepting bitcoin as a means of payment for our goods, which we may or may not liquidate upon receipt,” the company added

After the news, the price of Bitcoin soared to a new high of more than $44,000 per coin.

Also Read: CBN orders complete shut down of Bitcoin, Cryptocurrency Trading

Musk has helped to drive the popularity of cryptocurrencies, including bitcoin and dogecoin, by regularly tweeting that he is a “supporter” of the cryptocurrencies.

Earlier this month, the price of bitcoin soared after Musk said he was a cryptocurrency "supporter" in an interview with Clubhouse, a new social media app designed for wealthy people.

Previously, he changed his Twitter biography to "#bitcoin."

Dogecoin's price also rose after Musk tweeted about it. Dogecoin's price rose by 50 percent on 4 February shortly after he tweeted, "Dogecoin is a people's crypt."