One of the happiest news ever for bitcoin investors. Tesla has finally made an entry into the bitcoin market. As per an announcement made on Monday, Tesla has announced that it has bought $1.5 billion worth of bitcoin.
When filing with a Security exchange, Tesla confirmed that it bought Bitcoins for more flexibility and also to maximise its returns on cash.
In another statement, Tesla also said that it will soon start accepting payment in Bitcoin in exchange for its products. But, it will be as per the applicable law and for a few months, it will be on a limited basis.
The investment of $1.5 billion of bitcoin will give Tesla the liquidity once it will start accepting payment in bitcoins.
The move by Tesla to enter the cryptocurrency market and a heavy investment shows that Bitcoin has potential. The company has more than $19 billion in cash as well as cash equivalents as per the report they published in 2020.
Many people are calling this move by CEO Elong Musk to be foolish. Many people said that his recent tweet about bitcoin can also be one of the major reasons for the sudden increase in sudden price for Bitcoin. His positive message at Twitter has motivated many people to buy the digital currency.
Almost 2-weeks back. Tesla CEO Elon Musk has added hashtag #bitcoin in his Twitter bio. This move by Elon Musk is said to be one of the biggest reasons for the increase in the price of Bitcoins. After this hashtag on Twitter, the price of Bitcoin has increased by almost 20%. Two days later, he also said at a Chatsite named ClubHouse that he thinks that Bitcoin is a good thing and he is a big supporter of Bitcoin.
Bitcoin has witnessed a price surge on Mindat and the price of Bitcoin reached upto $44,200. In addition to this, Tesla’s shares were also up by 2%. But, Tesla has warned investors about the volatility in the price of Bitcoins.
Elon Musk has got into trouble many times for his Tweets in the past. But, it is still unclear whether this tweet has significance or not. No matter, if the Tweet is a marketing move or not, people as well as analysts are quite excited about the entry of a big player who wants to make a heavy investment in Bitcoin.