Tesla buys more than 1.2 billion euros in bitcoin

Tesla buys more than 1.2 billion euros in bitcoin. Technological led by Elon Musk wants to accept this cryptocurrency soon as a form of payment. Bitcoin has skyrocketed 10% since this announcement.

Tesla has just reinforced its vaults with … bitcoins. North American technology bought 1.50 billion dollars (more than 1.2 billion euros) in this cryptocurrency.

The company led by Elon Musk intends to accept bitcoin as a payment method soon, according to information released this Monday to the United States market regulator (SEC, in the original acronym).

“In January 2021, we updated our investment policy, to give us more flexibility and maximize the returns on our money that does not need to maintain adequate operational liquidity. As part of this policy, we invest amount of our cash in alternative reserve assets. In this policy, we invested a total of 1.5 billion dollars in cryptocurrencies “, says the document.

The electric car maker even admits, “shortly, to accept bitcoin as a form of payment for our products”. The use of this cryptocurrency will be “subject to the legislation in force and, initially, on a limited basis, in which we may or may not settle after receipt”.

Bitcoin is on the rise after this Tesla announcement. Since 12:45 pm, the value of this cryptocurrency has skyrocketed by more than 10%, from $ 39 403 to $ 43 411.

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This Tesla announcement comes a week after Elon Musk declared support for bitcoin. According to statements transmitted in the Clubhouse application, the American businessman considers that this cryptocurrency “is a good thing” cited by the newspaper The Guardian.

At the accounting level, digital assets are considered “intangible assets of indefinite duration”, adds Tesla in the statement. Because of this, any drop in the price of bitcoin below values ​​at time of its acquisition will imply recognition of impairments. It is considered that the company cannot make prospects of rising market prices until there is a sale.

Musk’s Tesla decided to bet on bitcoin. The manufacturer invested $ 1.5 billion in the virtual currency, preparing to start accepting payments for its electric cars with this currency. The company revealed in the annual report submitted to US regulator SEC.

“In January 2021, we updated our investment policy to give us more flexibility so that we can diversify and maximize our liquidity returns,” explains the company in the document. “We can invest a portion of that liquidity in alternative reserve assets, such as digital assets, gold bars, exchange-traded gold funds” and others, adds the company.

In this context, “we invest an aggregate amount of $ 1.5 billion in bitcoin under this policy and we will be able to acquire and maintain other digital assets from time to time or in the long term”.

“In addition, we hope to start accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not settle as soon as we receive them”, the information also emphasizes. On Twitter, a user comments that two bitcoin will be enough to buy a Tesla.

After Tesla’s bet on the currency, advanced by Bloomberg, was revealed, the value of bitcoin soared. The virtual currency, which multiplied the price last year, continues to earn almost 10%, worth more than $ 43,000, a record.
Tesla is also accelerating on the stock exchange, with the manufacturer’s securities adding 2.32% to $ 872 in trading before the opening of US stock exchanges.

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