Tesla Buys $1.5 Billion in Bitcoin, Sends Price to Highest Level Ever
(CQ Livingston) Elon Musk has been pushing cryptocurrency for a while. Now, he’s putting his company’s money where his Twitter is.
Tesla Inc. has invested $1.5 billion in Bitcoin and expects to start accepting the cryptocurrency as payment, Bloomberg News reports. Prices for the digital asset surged to a record above $43,000 after the news.
Meanwhile, owners of Bitcoin and other cryptocurrencies are scrambling to check their own prices. The cryptocurrency markets have been in a constant state of flux in recent weeks. Between Reddit pushing Dogecoin and Tesla’s Elon Musk pushing it along, even the “meme” based crypto has seen sharp jumps. Meanwhile, other cryptocurrencies have crashed, only to rebound the next day.
This move by Musk and Tesla could be an bellwether of discontent with fiat currencies as millions are jumping into the blockchain phenomenon. It could also be a tell that Tesla is leading the charge into a currency shift in hopes that they’ll be able to lead the way as an automotive company pioneer.
In retrospect it was so obvious.
Back on January 9, when discussing the recent surge of institutional and corporate purchases of bitcoin and conversion of cash into the cryptocurrency, we said that it was just a matter of time before Elon Musk joined MicorStrategy and bought “several billion” in bitcoin. Specifically, in “How Bitcoin Hits $100,000 Next: Morgan Stanley Boosts Stake In Microstrategy, Opening The Floodgates” we said…
One such company which we are convinced will announce it is converting billions of its existing cash into bitcoin, is none other than Tesla, whose CEO Elon Musk was urged by MSTR CEO Saylor to make a similar move with Tesla’s money. And since Musk, already the world’s richest man thanks to the most aggressive financial engineering on the planet, has never been one to shy away from a challenge, we are absolutely confident that it is only a matter of time before Tesla announces that it has purchased a few billion bitcoin.
Could car-buyers be bringing their cryptowallets to dealerships instead of relying on bank loans in the near future? Tesla seems to think so.
