Elon Musk has been on a crypto tear over the past two weeks. It began with a number of posts promoting a fun meme-based cryptocurrency called Dogecoin which fueled a 1000% rally in the crypto’s price. And now, in a recent filing with the Securities and Exchange Commission, it was revealed that his EV giant Tesla has purchased as much as $1.5 billion worth of bitcoin.
Tesla CEO Elon Musk has been a noted supporter of cryptocurrencies in the past, even highlighting his regret for not buying into the bitcoin revolution earlier, stating that he was “late to the party.”
And in more recent weeks, the tech behemoth has also jumped on the Dogecoin bandwagon. The cryptocurrency, originally created as a joke, has soared since late January, rising from just $0.007 per coin to an all-time high of $0.08 per coin. Acknowledging that the currency was never meant to be taken seriously, Musk noted that it would be “an interesting and ironic outcome” if Dogecoin became “the currency of Earth in the future”, adding that “fate loves irony.”
The future currency of Earth— Elon Musk (@elonmusk) February 6, 2021
While Musk’s interest in Dogecoin has sparked a dramatic climb in the crypto’s price, it’s not the first time his statements have sent waves through the crypto world. On January 29th, Musk added the word “bitcoin” to his Twitter profile, sparking a 15% rally in the currency’s value just hours after.
And now it appears he’s putting his money where his mouth is, with Tesla investing $1.5 billion in the popular cryptocurrency.
In an SEC filing released today, the company announced that it will has “updated [its] investment policy to provide [it] with more flexibility to further diversify and maximize returns on [its] cash that is not required to maintain adequate operating liquidity,” adding that it will also be investing in “certain alternative reserve assets” that include “digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future.”
The announcement also suggested that the company will likely begin accepting cryptocurrency as a payment option, with the statement reading: “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, which we may or may not liquidate upon receipt.”
By Michael Kern for Oilprice.com
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