In bet on bitcoin, Tesla invests US$1.5 billion in cryptocurrency, signals intent to begin accepting it as form of payment
- Carmaker says in a filing that it made the bet on bitcoin after updating its investment policy last month to allow it to buy digital assets
- Bitcoin rises by as much as 16 per cent to an all-time high of US$44,795 before trading at around US$43,183 in New York
Tesla’s embrace of bitcoin lends increased legitimacy to electronic currencies, which have become more of a mainstream asset in recent years despite some scepticism. It also fits the maverick image of Musk, who upended the automotive industry with battery-powered vehicles and disrupted the equities market with the stock’s ascension to the blue-chip S&P 500 Index last year.
Tesla took a flier on the digital coin after it tripled in 2020. The cryptocurrency rose as much as 16 per cent to an all-time high of US$44,795 before trading at around US$43,183 as of 1.30pm in New York.
Musk has often tweeted about cryptocurrency-related topics and this month called bitcoin “a good thing” in an interview. Dogecoin, the once tongue-in-cheek digital currency, hit a record on Monday after Musk, rapper Snoop Dogg and Kiss bassist Gene Simmons all tweeted about it.