Tesla Buys $1.5 Billion in Bitcoin, Sending Its Price Soaring

From PC Mag: Tesla is making a big bet on Bitcoin. The automaker not only plans on accepting the virtual currency as a form payment, but it’s also buying $1.5 billion in Bitcoin itself.

Tesla is spending the massive sum in the hopes Bitcoin will turn out to be a worthy investment, the automaker says in a Monday securities filing. Last month, the company updated its investment policy to “further diversify and maximize returns” on the cash it currently holds.

“Thereafter, we invested an aggregate $1.5 billion in Bitcoin under this policy and may acquire and hold digital assets from time to time or long-term,” the filing adds. In the same document, Tesla says it expects to accept Bitcoin as a form of payment in the near future, but initially on a limited basis.

It’s not clear when exactly Tesla bought the Bitcoin. But on Jan. 8, the virtual currency hit what was then a record high at $40,519, according to CoinDesk. The digital asset is now worth over $43,000 following Tesla’s disclosure that it invested $1.5 billion in Bitcoin. A year ago, it was worth a quarter of that at $9,900.

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