According to a filing with the Securities Exchange Commission, Tesla CEO Elon Musk purchased bitcoins worth $1.5 billion in January 2021 after the firm changed its investment strategy to include digital assets.
According to Bloomberg, the digital asset’s price has risen by as much as 16 percent, with rates approaching $45,000 for the first time.
Tesla filed a document that said, “We revised our investment strategy to provide us with more flexibility to further diversify and optimise returns on our cash that is not needed to retain sufficient operational liquidity.”
The company also announced that it would begin accepting Bitcoin as payment for its products and services in the future.
According to the company’s filing, “we plan to begin accepting Bitcoin as a form of payment for our goods in the foreseeable future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.”
The news comes just days after Tesla co-founder Elon Musk posted a Bitcoin icon on social media. He’s been tweeting memes of Dogecoin, another alternative cryptocurrency.
Bitcoin prices have increased by 35% since the start of the year, and have recently surpassed the psychological resistance level of $40,000. Since the beginning of April, the cryptocurrency has risen over 800 percent as more institutional and retail investors bought it as an inflation hedge.
In India, the government intends to introduce legislation prohibiting the use of private cryptocurrencies in Parliament. The Reserve Bank of India will establish a central bank digital currency, which the government intends to use.
The central bank recently announced that an internal panel is developing a digital currency model to compete with private cryptocurrencies including Bitcoin.