Telsa Bitcoin, the Telsa company early this year 2021 announces its purchase of over about $1.5 billion worth of Bitcoin. This was done to further diversify and maximize returns on cash. Telsa added that soon they will start to receive Bitcoin as a means of payment in exchange for their products.
Although subject to applicable laws and initially on a limited basis. This made Telsa the first major automobile maker to make such a move. The $1.5 billion worth of Bitcoin will provide Telsa with liquidity in Cryptocurrency when they begin to accept it as payment.
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The move by Telsa into Bitcoin investment is historical. This moves to invest in Bitcoin shows a significant percentage of its cash in the Bitcoin investment. However, the company as of the end of 2020 made over $19 billion in cash and cash equivalents at hand.
When Elon Musk the CEO of Telsa Company made a tweet on Twitter automatically the price of Cryptocurrencies rose. His tweet encourages people to be dive in to buy digital currencies.
Another of his moves, when he added the hashtag #bitcoin to his Twitter bio. This single action shot the price of Cryptocurrency by up to 20% as reported by https://www.cnbc.com/2021/01/29/elon-musk-tweets-are-moving-markets.html
Also, he was seen saying on social media chat site Clubhouse that “I do at this point think Bitcoin is a good thing, and I am a supporter of bitcoin. “ https://www.cnbc.com/2021/02/01/elon-on-clubhouse-i-am-a-supporter-of-bitcoin.html
This makes the price of Bitcoin surged to the next level for $44,200 the following week after this statement.
Elon Musk Suspend Vehicle Purchase Using Bitcoin
This came as a shock to the public when Tesla CEO Elon Musk announces on Twitter suspending of vehicle purchases using Bitcoin. According to him, it’s out of concern over the rapid increase in the use of fossil fuels for the mining of bitcoin.
By this announcement, the prof Bitcoin dropped about 5% in the first minutes after. This is as against his earlier announcement in an SEC filling in February when Telsa revealed about their purchase of bitcoin worth $1.5 billion and promise more in Bitcoin investment. Also, he promises to start accepting Bitcoin as a means of payment for its products.
However, Although Telsa has said it would not accept Bitcoin for purchasing the vehicle recently. He also, emphasizes that Telsa plans to hold its coin rather than sell the Bitcoin it has already. But he will be looking at other Cryptocurrencies that require less energy for transactions.
The certainty of the Cryptocurrency market to some is still highly risky to invest in, like major Wall Street banks like Goldman Sachs and Morgan Stanley sought to offer their wealthy clients Bitcoin transactions. With all these events coming up let’s see what Telsa wants to do with its Bitcoin in the future.