Bengaluru, NFAPost: Electric car maker Tesla has backed the Cryptocurrency market by purchasing $1.5bn of Bitcoin (BTC), according to its annual 10-K report filing on Monday with the US Securities and Exchange Commission (SEC).
Elon Musk has made this announcement in the wake of several requests from Tesla customers for accepting bitcoin as the mode of payment for buying cars.
The company revealed its policy change to invest in Cryptocurrency exchange as per the new SEC filing:
“In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximise returns on our cash that is not required to maintain adequate operating liquidity.”
“As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future. Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term.”
Tesla further added that it is open to accept payments in Bitcoin in the future as Elon Musk seems keen to convert the company’s balance sheet to Bitcoins.
Musk has recently been tweeting about his support for Dogecoin while the cryptocurrency value shot up significantly in the past week.
In contrast, Bitcoin’s price has surpassed $48,000 at the time of writing this piece as its value rose by more than 10% following Tesla’s announcement to support the Cryptocurrency market.