Tesla has announced (via MarketWatch) that it acquired $1.5 billion in bitcoin in January and that it’s planning to accept bitcoin as a form of payment for its products “in the near future”. The disclosure comes after Elon Musk’s Twitter antics caused the price of bitcoin to spike just when it looked like it was set for a price drop.
The company’s decision to buy bitcoin follows an update to its investment policy which gives the firm more flexibility in the assets that it holds. The new policy was approved by Tesla’s Board of Directors’ Audit Committee and also allows the firm to hold other assets including gold bullion.
Following the announcement, the price of bitcoin jumped from $39,500 to a peak of just over $43,400 which is close to where it’s sitting now. It’s unclear what will happen with the price going forward because it is so volatile but Tesla’s backing of bitcoin and its willingness to accept bitcoin as a payment option may give confidence to investors and help keep the price at its current levels.
Over the last several months, bitcoin managed to climb from $20,000 up to above $40,000 and since then it has managed to keep prices around that level. The recent price surge has also drawn interest from the wider public with some thinking of investing money to try to benefit from any future price increases. If you’re thinking about buying bitcoin or other cryptocurrencies, you should ensure you’re only spending what you can afford to lose as it could become worthless overnight.