Bitcoin’s price broke past the $44,000 mark on the back of news that EV manufacturer Tesla invested $1.5 billion into the digital currency. As of the previous hour, the price of a single BTC sits at $44,790, with the brief spike expected to hover somewhere between the $42000-$44,000 mark.
Complementing the crypto surge in recurring statements all the way, Tesla further expects to accept Bitcoin as payment for its products, including cars in the near future.
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According to an SEC filing published earlier today, the company “invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term”.
The filing further adds that “Tesla updated its investment policy in January in order to diversify its cash on hand and maximize returns. It may invest its reserves into digital assets, gold, gold ETFs and other assets”.
It was with this new policy in mind that the company invested heavily into Bitcoin. This policy comes a little over a month after Musk met with MicroStrategy CEO Michael Saylor.
After a reported conversation that followed, Musk got quickly drawn towards the Bitcoin bandwagon, changing his Twitter bio to just one word: Bitcoin. In a statement, Musk later said in a statement:
I am a supporter of bitcoin. I am late to the party but a supporter. Bitcoin is on the verge of getting broad acceptance by traditional finance people
Besides Tesla’s mammoth allocation of assets in Bitcoin, Musk has continued to incessantly tweet about Dogecoin, suggesting that it would be the future currency for all economies.
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It’s worth mentioning that this spike also reverberated around similar markets. Ethereum’s price has shot up 3% in the last hour to hit $1,750. Polkadot also saw a brief 7% spike to $22.83, before falling back to $21.72.
Please note that Bitcoin is up almost 50% this year following gains of over 300% in 2020. Watch this space for subsequent updates.