Tesla finally took a big step into the crypto market as it made a $1.5 billion investment in bitcoin. The electric vehicle company has also announced that it will accept payments in cryptocurrencies very soon.
As there have been a lot of assumptions and expectations among crypto enthusiasts about Tesla CEO Elon Musk’s support of BTC, the recent announcement is definitely good news for investors.
Tesla Files Annual Report To SEC
On Monday, Tesla submitted a report to the Securities and Exchanges Commission that declares the recent $1.5 billion investment in bitcoin under the investment policy. The new investment policy allows the vehicle company to obtain and hold crypto assets for both the short and long term.
Elon Musk, the founder of Tesla has been one of the most important businessmen who supported cryptocurrencies. In 2018, Musk mentioned BTC and other cryptocurrencies in his social media posts. Recently the tweets from the billionaire caused an immense flux in the price action of BTC and dogecoin.
DOGE witnessed a sharp inclination in its price after Musk mentioned it in his tweets a number of times. The Musk effect in the crypto market has also raised concerns among some investors.
Apart from Elon Musk, big investors like Bill Miller and Paul Tudor Jones II have helped in bitcoin’s popularity. They propelled the cryptocurrency against expected inflation.
Tesla has also joined multiple trade companies like MicroStrategy by Michael Saylor that traded on bitcoin. Tesla has informed in its annual report that adding bitcoin will provide better flexibility and diversity, especially in operating liquid assets. The company also plans to utilize bitcoin as a payment method very soon.
Elon Musk, who called himself a late-comer in the bitcoin party, has always been a BTC enthusiast. The announcement by the company has created a noticeable impact on bitcoin price action.