Tesla announced Monday that it bought bitcoin worth $ 1.5 billion, according to a document filed with the SEC.
The company said it bought bitcoin to get “more flexibility to diversify and maximize our cash returns,” according to the presentation. In addition to the purchase, Tesla said it would begin accepting bitcoin payments in exchange for its products. This would make Tesla the first major carmaker to accept Bitcoin as a payment.
The move raised immediate questions about CEO Elon Musk’s behavior on Twitter in recent weeks, where he has been blamed for rising prices for cryptocurrencies such as bitcoin and dogecoin by posting positive messages about them and therefore encouraging buying. more people.
Bitcoin prices rose to new highs Monday after Tesla’s announcement, reaching a price of at least $ 43,200. Tesla shares rose more than 2% in premarket trading. Tesla warned investors of Bitcoin price volatility in its SEC filing.
Tesla’s move on Monday represents an investment of a significant percentage of its cash in the investment. The company had more than $ 19 billion in cash and cash equivalents at the end of 2020, according to its most recent filing.
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