Tesla said in the statement that;
- “Thereafter, we invested an aggregate of $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. 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.”
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The fast-rising American electric car manufacturer further disclosed that it made the bet on Bitcoin after updating its investment policy last month to allow Tesla to invest in digital assets as well as gold bullion and gold exchange-traded funds.
Investors pushed the price of Bitcoin to $44k when it became public knowledge that Tesla allocated 7.7% of its cash holdings in Bitcoin.
The $807 billion car company by market value, further disclosed it was aware of the alternative assets class price volatility and the fact it could be exposed to malicious attacks;
The statement further added that “The prices of digital assets have been in the past and may continue to be highly volatile, including as a result of various associated risks and uncertainties.
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“For example, the prevalence of such assets is a relatively recent trend, and their long-term adoption by investors, consumers, and businesses is unpredictable.
“Moreover, their lack of a physical form, their reliance on technology for their creation, existence, and transactional validation, and their decentralization may subject their integrity to the threat of malicious attacks and technological obsolescence.”
Recall the founder of Tesla, Elon Musk some months ago made inquiries about converting “large transactions” of Tesla’s balance sheet into Bitcoin from Michael Saylor, a prominent supporter of the digital currency.
In a series of tweets seen by Nairametrics, Micheal Saylor, Chief Executive Officer of Microstrategy Inc., advised the tech entrepreneur to reallocate his company’s treasury assets to Bitcoin and “do Tesla’s shareholders a huge favor.
Michael Saylor had some months ago, disclosed how billionaires could turn the price of Bitcoin up at least three folds. His bias was based on the aurora these billionaires bring notably in the global financial world.
In the Youtube interview, Micheal Saylor started his narrative by explaining deeply the effect such billionaires would have on the flagship crypto market.
“It’s important that 100 million people embrace Bitcoin but there are 10 people that can triple the price of Bitcoin. This is not like Facebook, nobody ever brought a billion friends to Facebook. This is like when a person with $10 billion decides that they want to adopt this network and they put $2 or $3 billion on the network, that’s going to be more monetary energy that flowed into the network than the first 10 million people put into the network. It’s ten million to one gain,” Saylor said.