A filing with US regulator has confirmed that Tesla is on board for Bitcoin payments in the future. Bitcoin spiked by almost $3,000 in minutes on February 8, 2021 as the reports emerged that Tesla had purchased $1.5 billion worth of BTC.
Data acquired from TradingView tracked BTC/USD as an abrupt spike to above $41,000 appeared as news of Tesla’s plans came in. The filing with United States regulator the Securities and Exchange Comission (SEC) indicates that the electric carmaker will buy all that bitcoin to support bitcoin transactions soon. This filing stated:
“In January 2021, we updated our 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. 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.”
The crypto markets responded wildly to this revelation even as the statement went on to say:
“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. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.”
This move follows some encouraging signs from the world’s richest man, CEO Elon Musk, who last week openly said that he was a ‘supporter’ of Bitcoin. However, since then signals have been mixed, after the Tesla CEO removed Bitcoin from his Twitter biography but continued promoting and tweeting about Dogecoin (DOGE).
At the time of writing, volatility is still rampant with bitcoin trading above $44,300 after setting an all-time high of $44,850.