• Tuesday, July 16, 2024
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BusinessDay

Tesla’s $1.5bn bet on Bitcoin drives price to record high

Elon Musk set to step down as Twitter CEO

Tesla announced on Monday that it bought $1.5bn worth of Bitcoin. The electric car company also said it will soon start accepting the cryptocurrency as payment.

Bitcoin immediately surged to a record high after the announcement. The top crypto jumped 27 percent to $47,000 immediately after the announcement, from $37,000.

That’s the highest price the crypto has sold for since inception in 2008, according to data tracked by BusinessDay.

Tesla’s investment is a vote of confidence on Bitcoin and is likely to see the crypto attract more attention in the investment community.

Tesla made the investment after it “updated its investment policy” so that it could put its cash into other assets, it said. That could include “certain specific alternative reserve assets”, it announced in a filing with the SEC.