Bitcoin jumps as Tesla buys $1.5bn of currency

Bitcoin jumps as Tesla buys $1.5bn of currency

Elon Musk Tesla said he bought about $ 1.5 billion (£ 1.1 billion) of cryptocurrency Bitcoin in January and hopes to receive it as a future payment.

The news sent bitcoin’s price up 14% to $ 43,968, a record high.

Tesla said it aims to maximize the return on cash reserves without using it in the day-to-day management of the company.

It happened a few days after Mr. Musk raised the bitcoin price by adding “#bitcoin” to his Twitter account page.

He took it down a few days later, but went on to talk about Bitcoin and other cryptocurrencies, including Dogecoin, which jumped 50 percent after being approved.

In a stock exchange statement, Tesla stated that it has “updated its investment policy” and is trying to invest in “reserve currency” such as digital currency, gold bullion or exchange-traded funds.

It said it later bought $ 1.5 billion in Bitcoin and was able to “acquire and hold digital assets on an occasional or long-term basis.”

“In addition, we expect Bitcoin to be accepted as a means of payment for our products in the near future, subject to applicable laws and initially to some extent,” he continued.

Mr. Musk tweeted a week ago that Bitcoin was “on the verge of” becoming widely accepted by investors.

Analysts said Tesla’s move could prove a change in the currency game.

“I think we’ll see an acceleration for companies looking to allocate bitcoin once Tesla takes the first steps,” said Eric Turner, vice president of market intelligence for cryptocurrency and data firm Messari.

“One of the biggest companies in the world now owns Bitcoin, and in addition, any investor who owns Tesla (or even just the S&P 500 fund) will be affected.”

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