California: Tesla invested close to $1.5 billion in Bitcoin and said it will soon accept the digital currency as payment for its high-end vehicles.
Bitcoin soared 15% to above $43,000 Monday on the news.
The electric car maker announced the strategy in a filing with the US Securities and Exchange Commission.
Bitcoin record
Bitcoin rose to $43,863 and briefly hit a new all-time peak, while the shares of Tesla soared as well.
In its December quarter earnings report last month Tesla said it had cash and cash equivalents of $19.4 billion.
Tesla turns around
California Palo Alto-based Tesla posted its first annual net profit in 2020, and its stock soared to make it the world’s most valuable automaker.
Tesla joined the S&P 500 last year and is valued at more than $820 billion.
It’s been a wild ride for Bitcoin since it debuted on Wall Street in December 2017.
Bitcoin rises from the ashes
Futures exchanges rolled out bitcoin futures, pushing it to roughly $19,300, before its value evaporated quickly in 2018, and by December Bitcoin was worth under $4,000 a coin.
In October, Bitcoin rallied from below $11,000 and recently crossed $40,000 for the first time in its history.
Bitcoin rally
While companies have embraced the technology underlying digital currencies like Bitcoin, known as the blockchain, the actual uses for Bitcoin have not really changed.
It’s still largely used by those criminals seeking to launder money, and for the most part, as a store of value.
But the situation could turn if major companies follow Tesla’s lead and begin accepting the digital currency as payment.
Photo courtesy: MichaelWuensch from Pixabay