Tech

Bitcoin hit $44,795.20, after Tesla’s investment of $1.5 billion in the digital currency

San Francisco: Electric vehicle company Tesla, has invested $1.5 billion in the Bitcoin cryptocurrency. Since the investment Bitcoin hit a record high near $45,000 on Monday. Before cooling down to $44,20, Bitcoin hit $44,795.20 around 1325 GMT.

Fawad Razaqzada, Analyst at ThinkMarkets stated that, “This is probably one of the biggest developments for the cryptocurrency industry”.

The announcement of investment came in between the renewed interest shown by Tech billionaire Elon Musk in cryptocurrency and Tesla informing its customers to begin accepting bitcoin as a form of payments for their products. Last week Tesla’s CEO Musk, changed his Twitter bio to read simply “#bitcoin”.

Tesla while submitting its annual 10-K report filed with the US Securities and Exchange commission (SEC) on Monday, said “In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximise returns on our cash that is not required to maintain adequate operating liquidity.”

It further stated that as a part of policy, they may invest part of such cash in alternative reserve assets, “Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy. 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,” it added.

Bitcoin, digital cryptocurrency is just 12-year-old, and witnessed a meteoric rise since March, when it stood at $5,000 and spurred by online payments giant PayPal, saying it would enable its users to use cryptocurrency.

Citizens Bee News Desk

Citizen’s Bee, a platform based in India which tends to showcase news from all walks of life. We aim to be the voice of the marginalized, by working on the ground bringing you the purest news without filter.

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