Tesla Buys $1.5 Billion worth of Bitcoin as Reserve Asset to Diversify & Maximize Returns on Cash

2021-2-8 16:36

Elon Musk's Tesla did what the Crypto Twitter (CT) has been speculating the electric car company to do when the Bitcoin proponent Musk changed his bio to “bitcoin.”

On Monday, the company announced that it had bought $1.5 billion worth of Bitcoin, and it sent the volatility in the market through the roof, with the BTC price breaking into a new all-time high above $44,240.

Interestingly, this is not a one-time thing, and the company may acquire and hold digital assets from time to time.

According to the company’s US Securities and Exchange Commission (SEC) filing, Tesla

“hold and may acquire digital assets that may be subject to volatile market prices, impairment and unique risks of loss.”

The Bitcoin purchase has been made as per the company’s investment policy update in Jan. 2021 to provide the company with

“more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity.”

As part of the updated policy, Tesla may invest a portion of its cash in alternative reserve assets, including digital assets, gold bullion, gold exchange-traded funds, and other assets.

Besides buying the leading digital currency, the company will also accept BTC as a form of payment in the near future.

Pointing to the risks associated with digital assets, the company lays out their highly volatile nature, being a relatively recent trend, their reliance on technology, making them subject to the threat of malicious attacks and tech obsolescence, and lack of regulatory clarity.

However, in its SEC filing Tesla notes that the company is exposed to fluctuation in currency rates as well.

Given that the company transacts business globally in multiple currencies, “any strengthening of the U.S. dollar would tend to reduce our revenues as measured in U.S. dollars, as we have historically experienced.” As for the value of the U.S. dollar depreciating significantly against foreign currencies, their margins suffer.

Bitcoin/USD BTCUSD 43,043.0357 $4,696.00 10.91% Volume 86.2 b Change $4,696.00 Open$43,043.0357 Circulating 18.62 m Market Cap 801.59 b baseUrl = "https://widgets.cryptocompare.com/"; var scripts = document.getElementsByTagName("script"); var embedder = scripts[scripts.length - 1]; var cccTheme = {"Chart": {"fillColor": "rgba(248,155,35,0.2)", "borderColor": "#F89B23"}}; (function () { var appName = encodeURIComponent(window.location.hostname); if (appName == "") { appName = "local"; } var s = document.createElement("script"); s.type = "text/javascript"; s.async = true; var theUrl = baseUrl + 'serve/v1/coin/chart?fsym=BTC&tsym=USD'; s.src = theUrl + (theUrl.indexOf("?") >= 0 ? "&" : "?") + "app=" + appName; embedder.parentNode.appendChild(s); })(); var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD"); The post Tesla Buys .5 Billion worth of Bitcoin as Reserve Asset to Diversify & Maximize Returns on Cash first appeared on BitcoinExchangeGuide.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Decentralize Currency Assets (DCA) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 DCA

assets digital add part may company announces

assets digital → Результатов: 126


Фото:

Один из крупнейших майнеров биткоинов инвестирует в расширение бизнеса

Genesis Digital Assets открывает майнинговое предприятие в Швеции. Американская компания Genesis Digital Assets, которая является одним из крупнейших майнеров биткоинов, объявила о том, что открывает новое майнинговое предприятие в Швеции.

2023-8-23 19:15


Matrixport secures USD 50M insurance coverage from Canopius for digital assets held with Cactus Custody

Matrixport, one of the world's largest digital assets financial services ecosystems, has announced the securing of $50 million of insurance coverage for digital assets held in cold storage with CactusThe post Matrixport secures USD 50M insurance coverage from Canopius for digital assets held with Cactus Custody appeared first on AMBCrypto.

2022-10-4 15:15


Фото:

Solstin opposes Lummis’ bill; says Bitcoin should be separate from other digital assets

United States Senate candidate Brian Solstin in a Tweet opposed Senator Cynthia Lummis‘ bill aimed at incorporating digital assets into the United States financial system by arguing that Bitcoin should be considered separately from other digital assets, using a report published by the financial services company  Fidelity Investments to explain why.

2022-6-10 20:15


The Role of Digital Assets in a Post-COVID World

Ripple CTO David Schwartz continues to explore the wider world of blockchain and digital assets on the Block Stars podcast. In the latest episode, he talks with Professor of Economics and Political Science at the University of California, Berkeley, Barry Eichengreen, about the current state of the global economy and where digital assets fit in … Continued The post The Role of Digital Assets in a Post-COVID World appeared first on Ripple.

2020-7-29 21:28


36% of Big Institutional Investors Own Digital Assets While 80% Find them Appealing: Fidelity Survey

36% of large institutional investors own digital assets such as Bitcoin, according to a survey from Fidelity Investments which also runs a service that trades and secures digital assets. Tom Jessop, president of Fidelity Digital Assets said, “These results confirm a trend we are seeing in the market towards greater interest in and acceptance of […]

2020-6-10 18:52


Фото:

Despite Russia’s Confusing Crypto Laws, P2P Bitcoin Trade Volumes Soar

Peer-to-peer cryptocurrency trading data shows digital assets like bitcoin are growing extremely popular in Russia, despite the State Duma’s opinions and regulations aimed at crypto assets. On Monday, the Russian government published a draft version of litigation mandates called “On Digital Financial Assets,” and lawmakers are looking for public opinion.

2020-6-4 00:02


Russia to Prohibit Crypto Circulation, Mining, and Ads Under New Draft Law For Digital Assets

Cryptocurrency regulations are quite tricky and up until now, only a few countries can boast of finding the right mix of existing new laws to regulate digital assets fairly. Russia is definitely not among the few of those countries as it always had a passive stance towards privately issued or decentralized cryptocurrencies. After months of […]

2020-6-3 20:52