The news about electric car giant Tesla purchasing Bitcoin valued at $1.5 billion has sent the price of Bitcoin pushing further again to $43,000, breaking its previous all-time high. Tesla also hinted that it will start receiving Bitcoin payments for its car products in the future.
We will begin accepting bitcoin as a form of payment for our products in the near future.
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The company also said it has filed its annual 10-K report with the Securities and Exchange Commission (SEC).
Elon Musk influences the crypto price
Tesla is responding to some of its customers who have been calling on the company to start accepting Bitcoin payments for cars on its website.
Chief Executive Officer of Tesla Elon Musk has been particularly optimistic and vocal about supporting cryptocurrency. He has tweeted about Bitcoin (BTC) trading and Dogecoin (DOGE) recently and even added Bitcoin to his Twitter profile. His support for Dogecoin also led to an upsurge in the price of the cryptocurrency. And after his company bought Bitcoin, it still yielded the same positive impact on Bitcoin’s price.
The price of Bitcoin has been increasing gradually since the beginning of the year, although there has been both an upward and backward shift in its price. Although the cryptocurrency remains volatile, there is a high sense that more institutional activities may still raise the price of the token a bit further.
Tesla hopes to add received BTC to its Bitcoin reserve
Given Bitcoin’s price movement, Tesla could be holding between 35,900 and 45,000 Bitcoin (BTC) following the Bitcoin purchase.
Tesla hopes to add the received Bitcoins to its Bitcoin reserves rather than liquidate them afterward.
Tesla’s investment in Bitcoin is coming after the company announced its first redesign of the Tesla Model S since it rolled out the electric sedan in 2012. The new design will include a 520-mile range option, a new interior, and a refreshed design. According to Tesla, the model will be ready for customers in March this year. With the Bitcoin investment, Tesla has now joined companies like Microstrategy by converting part of their company’s balance sheet to Bitcoin.