(GNB Desk): Bitcoin has surged to a record high after a major announcement of support from Tesla.
Tesla, Inc., the electric car company announced Monday that it has invested an aggregate $1.50 billion in Bitcoin and it plans to begin accepting the digital currency as payment for its high-end vehicles soon.
The price of Bitcoin soared 15.4% to around $44,500 Monday in reaction to Tesla’s announcement, according to CoinBase.
Elon Musk, Tesla CEO revealed the new strategy in a filing with the U.S. Securities and Exchange Commission (SEC), saying its investment in digital currency and other “alternative reserve assets” may grow.
Tesla disclosed its bitcoin purchase in its latest annual report, saying the move aims to “diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity.” Tesla said a board committee had approved changes to company rules on investments, adding that it can also invest cash in gold bullion and gold exchange-traded funds among other assets.
Elon Musk, Tesla’s chief executive, has been especially vocal in recent days in his support for both bitcoin and cryptocurrency generally. Days ago, he added the word “bitcoin” to his bio, alongside its “B” logo, but it has since been removed.
Bitcoin, often described as a cryptocurrency, a virtual currency or a digital currency – is a type of money that is completely virtual.
It’s like an online version of cash. You can use it to buy products and services, but not many shops accept Bitcoin yet and some countries have banned it altogether.
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