Tesla bought US$1.5Bil of Bitcoin last month, may accept Bitcoin as currency

United States Security and Exchange Commission (SEC) filings are generally pretty boring documents to read. Today, Tesla submitting a 10-K form that is incredibly important, disclosing that the company had invested in $1.5 Billion in Bitcoin.

Led by Elon musk, the company’s decision also included a larger statement on acquiring digital assets, as well as news they may consider accepting Bitcoin as a currency to purchase vehicles.

At the time of writing, Bitcoin was up over 12%, taking the price of a single Bitcoin to US$43,000+ or more than A$56,000 in Australia. Tesla’s ($TSLA) share price is also up 2%+ on the news.

In explaining the purchase, Tesla went into quite a lot of detail, not surprising when the cryptocurrency is still a new concept for many investors.

In Tesla’s Q4 and FY2020 update, they revealed they have US$19.4Bil in cash or cash equivalents. Taking $1.5B and investing in Bitcoin does remove some of the liquidity of that available cash, which shows a confidence in the company’s ability to continue to bring in income, relative to their growth requirements.

This is the largest corporation to date to announce a Bitcoin position, but many more are expected to follow and some like Square, already do, after placing a comparatively tiny $50Mil or 1% of the company’s value last October.

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Source: Tesla bought US$1.5Bil of Bitcoin last month, may accept Bitcoin as currency – techAU