Tesla Buys $1.5 Billion in Bitcoin
February 08 2021 - 9:11AM
Dow Jones News
By Micah Maidenberg and Caitlin Ostroff
Tesla Inc. on Monday said it has invested $1.5 billion in
bitcoin, and that it may accept the cryptocurrency as payment for
its products in the near future, sending the price of bitcoin
soaring.
Tesla disclosed the bitcoin purchase in its latest annual report
filed on Monday, saying members of its board's audit committee
updated Tesla's investment policy to provide "us with more
flexibility to further diversify and maximize returns on our cash
that is not required to maintain adequate operating liquidity."
The company is now allowed to invest cash in "digital assets,"
gold bullion, gold exchange-traded funds and other assets,
according to the report.
"We believe our bitcoin holdings are highly liquid," Tesla
said.
Founder Elon Musk has shown he is interested in bitcoin. Last
month, he changed his Twitter biography to "#bitcoin," a move that
sent prices for it higher. His tweets about dogecoin, a
cryptocurrency that was started in 2013 as a joke, also made that
virtual currency much more valuable.
Write to Micah Maidenberg at micah.maidenberg@wsj.com and
Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
February 08, 2021 08:56 ET (13:56 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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