Tesla discloses $1.5 billion worth of investment in Bitcoin

Tesla invested a significant percentage of its cash – $1.5 Billion into Bitcoin. In a recent SEC filing, Tesla disclosed the investment and updated the firm’s intention to acquire and hold digital assets from time to time or long-term.

The firm said it bought the Bitcoin to provide more flexibility to further diversify and maximize returns on their cash. Tesla cash on hand at the end of 2020 was $19.3 Billion. The document reads:

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. [..] Thereafter, we invested an aggregate [of] $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term.

Tesla’s Bitcoin purchase comes just over a month after Micro Strategy’s Saylor recommended converting Tesla cash reserves to Bitcoin and extended an offer to show Elon Musk his playbook for buying Bitcoin in large transactions.

After the news, Bitcoin price rose to record a new all-time-high reaching $44,900.