Tesla Takes Huge Bet on Crypto, Buys $1.5bn in Bitcoin

Tesla, the electric car company run Elon Musk, has disclosed that it bought $1.5bn in bitcoin and said it might soon accept payment in the popular cryptocurrency.

News of Tesla’s investment in bitcoin sent the digital currency soaring 14% to a record high of $43,500, a 300% increase on this time last year as cryptocurrency investment has moved into the mainstream as global interest rates remain at record lows.

Tesla disclosed the bitcoin holding in a filing with the US Securities and Exchange Commission on Monday.

The company said that it had “updated our investment policy to provide us with more flexibility to further diversify and maximise returns” to allow it to invest cash reserve in “alternative reserve assets including digital assets”.

It said that since the decision was approved by its audit committee it had “invested an aggregate $1.5bn in bitcoin under this policy and may acquire and hold digital assets from time to time or long term”.

The company added: “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.”

The $1.5bn held in bitcoin represents about 8% of all the $19.4bn that Tesla holds in cash and liquid assets, according to the SEC filing.

Musk has helped to drive the popularity of cryptocurrencies, including bitcoin and dogecoin, by regularly tweeting that he is a “supporter” of the cryptocurrencies. He has also joked that bitcoin is his “safeword”.

Meanwhile, Musk also announced on Monday that he had pledged $100m to a fund to develop technology that removes carbon dioxide from the atmosphere or oceans.