The declaration that a great deal of the crypto enthusiasts has been wishing for is here: Tesla has made a big investment in Bitcoin.
The pioneering electric vehicle manufacturer publicised on Monday in its annual report to the U.S. Securities and Exchange Commission that it has placed a total of $1.5 billion into Bitcoin under a new investment strategy and that the company may “obtain and hold digital assets in the short or long term.”
The announcement tops a history dating back to at least 2018 of Tesla founder celebrity-status billionaire Elon Musk tweeting and commenting on the prospects of Bitcoin and other cryptocurrencies such as Dogecoin.
A mounting number of big established investors such as Paul Tudor Jones II and Bill Miller have pushed into Bitcoin as a latent hedge against growing inflation, as the Federal Reserve and central banks around the globe dump trillions of dollars of newly printed money into financial markets to boost their coronavirus-afflicted economies. Tesla joins a number of publicly traded companies along giants as MicroStrategy that have guided company money into the leading cryptocurrency.
Bitcoin’s price rocketed more than 15% after Tesla’s revelation to a new all-time high of $44,821. The bounce pushed Bitcoin’s year-to-date payback to about 50%, as opposed to 3.9% for the Standard & Poor’s Index of significant U.S. stocks.
