Leading tech juggernaut Tesla has purchased $1.5 billion worth of bitcoin according to a filing to the Securities and Exchange Commision. The decision was approved by the Audit Commitiee of the tech company board of directors.
Tesla revealed that under the new policy the company may acquire and hold digital assets from time to time or long-term. In addition, Tesla says that it expects to start accepting Bitcoin as a means of payment in the near future and will begin initially on a limited basis.
The tech company revealed that although digital assets are highly volatile, Bitcoin has high liquidity which makes it worthy of investment. Tesla continues the increasing rush by institutions to hold bitcoin with MicroStrategy and Grayscale holding trusts worth $4 billion combined.
However it is the highest profile publicly traded company to purchase cryptocurrencies and this could usher in a new era for bitcoin adoption.
Musk a crypto supporter
Elon Musk, the CEO of Telsa is known as a crypto enthusiast and has commented on Bitcoin and Dogecoin. His comments have fueled increasing volatility of the crypto space with his tweets regularly pumping the price of Dogecoin.
This move by Tesla is long awaited with many key crypto influencers regularly asking Musk when they would be able to purchase Tesla cars with BTC. This development means that more people will be exposed to Bitcoin.
The news of the purchase has already caused a major ripple effect in the markets with Bitcoin currently pumping. The leading currency started the day around $38k but is currently trading at around $42,500.