San Francisco, Tech billionaire Elon Musk’s electric vehicle company Tesla has invested $1.5 billion in the bitcoin cryptocurrency, after the company updated its investment policy to invest in digital assets.
The development comes days after Tesla co-founder Elon Musk displayed a symbol of Bitcoin on social media.
He has been recently tweeting memes of another alternative cryptocurrency Dogecoin.
Bitcoin as a Payment Mechanism
In another significant move, the company said that it will start accepting Bitcoin as payment for its product and services in the future.
Comment from Tesla
“We updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity,”
“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.”
Impact on Bitcoin
The price of the digital asset jumped as much as 16% with prices nearing nearly $45,000 for the first time which is all time high since.
Bitcoin rates have surged 35 per cent since the beginning of the year and recently crossed above the psychological resistance level of $40,000.
The cryptocurrency has rallied over 800 per cent since the beginning of April as more institutional and retail investors bought the currency as hedge against inflation.
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