Tesla bought Bitcoin for $ 1.5 billion and plans to accept it as payment

Tesla bought Bitcoin for $ 1.5 billion and plans to accept it as payment

Tesla buys $1.5 billion in bitcoin: SEC filing

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In a new SEC filing, Tesla says it’s updated its investment policy to provide more flexibility for the company to be able to buy bitcoin. CNBC’s \”Squawk Box\” team discusses. Subscribe to CNBC PRO for access to investor and analyst insights on Tesla and more: https://cnb.cx/2BT2E7y\n\nTesla announced Monday it has bought $1.5 billion worth of bitcoin.\n\nIn a filing with the Securities and Exchange Commission, the company said it bought the bitcoin for “more flexibility to further diversify and maximize returns on our cash.”\n\nTesla also said it will start accepting payments in bitcoin in exchange for its products “subject to applicable laws and initially on a limited basis.” That would make Tesla the first major automaker to do so. The $1.5 billion worth of bitcoin will give Tesla liquidity in the cryptocurrency once it starts accepting it for payments.\n\nTesla’s move into bitcoin represents an investment of a significant percentage of its cash in the investment. The company had more than $19 billion in cash and cash equivalents on hand at the end of 2020, according to its most recent filing.\n\nThe moves raise questions around CEO Elon Musk’s recent behavior on Twitter, where he has been credited for increasing the prices of cryptocurrencies like bitcoin and dogecoin by posting positive messages that have encouraged more people to buy the digital currencies.\n\nTwo weeks ago, the billionaire Tesla owned added the hashtag #bitcoin to his Twitter bio, a move that helped to briefly push up the price of the cryptocurrency by as much as 20%. Two days later, he said on the social medial chat site Clubhouse: “I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin.”\n\nBitcoin prices surged to new highs Monday following Tesla’s announcement, reaching a price of at least $44,200. Tesla shares were up more than 2% Monday morning. In its SEC filing, Tesla warned investors of the volatility of bitcoin’s price.\n\nMusk has gotten into trouble for his market moving tweets in the past, but it’s unclear how that applies to his tweets about cryptocurrencies. Most notably, the SEC charged Musk with fraud in 2018 for his tweets about taking the company private at $420 per share.\n\nMusk ultimately settled with the SEC, and was forced to give up his role as chairman of the company’s board and pay a $20 million fine on top of another $20 million fine for the company itself.\n\n» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision\n» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC\n» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic\n\nTurn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.\n\nThe News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast \n \nConnect with CNBC News Online\nGet the latest news: http://www.cnbc.com/\nFollow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC\nFollow CNBC News on Facebook: https://cnb.cx/LikeCNBC\nFollow CNBC News on Twitter: https://cnb.cx/FollowCNBC\nFollow CNBC News on Instagram: https://cnb.cx/InstagramCNBC\n\nhttps://www.cnbc.com/select/best-credit-cards/ \n\n#CNBC\n#CNBCTV

Tesla bought Bitcoin for $ 1.5 billion and plans to accept it as paymentTesla bought Bitcoin for $ 1.5 billion and plans to accept it as payment

Tesla announced on Monday that it had bought $ 1.5 billion worth of bitcoins, according to a statement from the US Securities and Exchange Commission (SEC).

According to the documents, the company said it bought the Bitcoin cryptocurrency for «more flexibility and for further diversification and increased profit from cash». In addition to buying digital currency, Tesla has said it will start accepting bitcoin payments in exchange for its products. This could make Tesla the first major automaker to accept Bitcoin as payment.

The move raised immediate questions regarding the CEO’s performance Ilona Mask on Twitter in recent weeks, where he is credited with raising the price of cryptocurrencies such as Bitcoin and Dogecoin by posting positive messages about them and therefore encouraging more people to buy.

Bitcoin prices climbed to new highs on Monday following news of Tesla, reaching at least $ 43,200. Tesla shares are up more than 2% in the premarket. Tesla warned investors about bitcoin price volatility in its filings for the SEC.

This decision of the company represents an investment of a significant part of the available funds in investments.Tesla bought Bitcoin for $ 1.5 billion and plans to accept it as payment According to the latest data, the company had over $ 19 billion in cash and cash equivalents at the end of 2020..