Bitcoin saw a jump of over 14% on Monday to a record high soon after Elon Musk-owned Tesla announced that it had invested $1.5 billion in the most popular cryptocurreny last month, as per a report by Mint.Also Read - Will Tesla Launch in India Soon? Elon Musk Says He Wants To But Import Duties Too High
The news sent Bitcoin soaring as high as $44,000, while Ethereum saw a surge of 7%, the report said. Also Read - Elon Musk Congratulates ISRO on Successful Test of Vikas Engine for Gaganyaan Mission
Tesla announced the investment ten days after its CEO Elon Musk added a “#bitcoin” tag on his Twitter account bio, which sent bitcoin upward on the day. Also Read - Battlegrounds Mobile India July Update Features Tesla Gigafactory, Model Y Production, and Mission Ignition Mode
Tesla today said it had invested around $1.5 billion in bitcoin and expected to begin accepting payment for its cars and other products with it in the near future, prompting a 7% jump in the electronic currency.
Tesla said in a filing the decision was part of its broad investment policy as a company and was aimed at diversifying and maximizing its returns on cash.
It said it had invested an aggregate $1.5 billion in bitcoin under the changed policy and could “acquire and hold digital assets from time to time or long-term”.
Tesla’s investment is another sign of the cryptocurrency garnering widespread popularity as a type of investment. Enthusiasts often tout the digital asset as a hedge against inflation and store of value in a world awash with stimulus and rampant central-bank money printing.
Bitcoin is up almost 50% this year in terms of value following gains of over 300% in 2020.