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Bitcoin Surges as Tesla Confirms It Bought $1.5 Billion to Diversify Reserves

Published 02/08/2021, 07:50 AM
Updated 02/08/2021, 07:57 AM
© Reuters.

By Geoffrey Smith

Investing.com -- The price of Bitcoin surged to a new record high over $41,700 after Tesla (NASDAQ:TSLA) confirmed it had bought $1.5 billion of the digital currency on Monday.

The electric car company said it had made its decision “to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity,” in line with a recent change to its investment policy.

“We invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term,” Tesla said in a statement. “Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis.”

By 7:55 AM ET, Bitcoin was quoted at $42,539, up nearly 10% from its level late Sunday and triple where it was in October.

Latest comments

the question is whether Musc bought BTC before he started bragging about them and pumping the price up with his tweets. If so we have a cynical price manipulation with 46 millions fans to make money with 3 tweets and 0 argument.
hi
woow
he understands the future of money
Musk has so much money to loose
If anything Musk will create a buying frenzy which will push btc over 100k then he will sell. Smart move for smart people. Besides it's less then 1% of his net worth.
If anything Musk will create a buying frenzy which will push btc over 100k then he will sell. Smart move for smart people. Besides it's less then 1% of his net worth.
maybe but it smells the manipulation...
strange move
Brilliant move
Few guys from middle east were already seeking alternative to dollar in the past... . Musk will get slapped soon...
Smart move
such guys drain your blood..
ALL HAIL THE ALMIGHTY ELON GOD!
mind ,that you dont fall in love with a guy
Go back to wsb where you praise billionaires...
 hahahaaha
This is market manipulation. And the guy pretends he only owns Tesla shares, bit he is a real gambler.
stock market is gamble.
Yup! Sooner or later, Tesla is bound to crash hard!
butthurt
Yup! Sooner or later, Tesla is bound to crash hard!
definitely, but it might be in 100 years
from innovative to speculate...lost ground .. doesn't have future...tesla is giant ....hole
why are people so mad about quick profit? I'm still new at this but if you kwow and see its a bubble... TAKE ADVANTAGE OF THE MANIPULATION AND GREED... before the bubble stops
Because for some to profit, other have to lose.
That's the market.
same bs as all these ICO's back in 2017.. so tesla bought some btc so they can launder money out oif china.. so what?
sounds like a little pump and dump action from Elon.
here is a thought, what if Elon is kindly reminding us that paper currency is about to be less valuable vs alternative assets?
What if he is just manipulating the market?
Nobody talks about how many young people were influenced about Elon and lost their money on GME AMC
and also how many has gained
Please stop BTC
the fault is a silly federal reserve printing zillion USD...this market will burst..tax evasion speculation money laundering....
dollar backing up by oil, gold silver is having on price and use in production. What is Bitcoin ? - imagination?!
dollar is not backed by anything lol.
You are living in dream. Dollar backed by nothing
Musk came up with a plan to steal your stimulus payment...
Another step towards a bubble in the market! when the bubble burst it is in its largest state!
Stonk market turned into a joke... Billionaires making more billions utilizing social media.....
you voted for thay government. REAL WHAT YOU SOW
reap!
Do you think it would have been any different with the gop?
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