Tesla aims to adopt Bitcoin for payment

Tesla is prepared to take Bitcoin in reserves without actually converting it, thereby taking Bitcoin as payment for its cars. Elon Musk’s Tesla Motors follows in the footsteps of MicroStrategy and other firms by assigning half of the balance sheet to Bitcoin (BTC).

The corporation disclosed in Monday’s filing with the Securities and Exchange Commission that it had bought a total of $1.5 billion in Bitcoin, to be kept as an investment and store of value for its surplus assets. The overall selling price and volume of BTC purchased by the corporation is currently undisclosed.

In January 2021, Tesla’s investment strategy was revised at an unspecified stage, indicating that Tesla could keep between 35,900 and approximately 45,500 BTC, corresponding to average prices of $42,000 and $33,000, respectively. Given the price action of Bitcoin in the last few weeks, the prediction of 45,500 BTC is possibly closer to the true figure.

Tesla plans to begin offering customers the option to buy its goods in Bitcoin, the filing says, as part of the strategy. The Bitcoin it collects would not actually be liquidated as quickly as possible, unlike many other equivalent programmes, thereby likely contributing to its reserves.

Also Read: Bitcoin And Gold Are Both Having Bull Runs

Tesla’s new investment policy permits the acquisition of gold bullion and gold exchange-traded funds, or ETFs in addition to Bitcoin. Peter Schiff, popular “gold bug” and Bitcoin sceptic, seems to have taken meagre comfort from this fact, indicating that as the market responds to the news, Tesla’s BTC investment is already being sold off.

The purchase follows the entry of Elon Musk into the realm of cryptocurrencies. From only holding about 0.25 BTC a friend sent, Musk warmed up to the cryptocurrencies and Bitcoin as the 2021 bull was unfolding.