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Tesla says it will accept bitcoin in payments for cars and other products in near future

Tesla says it will accept bitcoin in payments for cars and other products in near future

Tesla says it will accept bitcoin in payments for cars and other products in near future
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By CNBCTV18.com Feb 8, 2021 8:25:02 PM IST (Published)

Tesla has invested $1.5 billion in bitcoin, the company said in an annual report filed with the US Securities and Exchange Commission for the year ending December 31, 2020

The crypto world has been waiting for this moment. In what seems like a calculated move, Tesla said on Monday it had invested around $1.5 billion in bitcoin and would begin accepting payments for its cars and other products with the cryptocurrency in the near future.

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The announcement led to a 10 percent jump in the digital currency. The electric carmaker has invested $1.5 billion in bitcoin, the company said in an annual report filed with the US Securities and Exchange Commission (SEC) for the year ending December 31, 2020.
The filing read: "…we 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."
Not just that! Tesla noted that the company expects to begin accepting Bitcoin as a form of payment for its products "in the near future". This would initially be on a "limited basis, which we may or may not liquidate upon receipt". This would make Tesla the first major automaker to accept Bitcoin as payment.
As soon as the news came out, the value of Bitcoin surged to a new record high of over $43,450. Tesla shares too went up by over 2 percent in premarket trading.
Over the past few weeks, Tesla and SpaceX CEO Elon Musk has repeatedly tweeted about cryptocurrencies such as Bitcoin and Dogecoin. He's been posting positive messages about the digital currencies. On January 29, Musk even changed his Twitter bio to mention only #bitcoin. Soon after, the value of the world's largest cryptocurrency rose by over 20 percent.
In December, Musk had written: "Bitcoin is my safe word".
Apart from Bitcoin, Musk has also tweeted about Dogecoin. In April 2019, he had labelled it as his “fav cryptocurrency”.
On January 28, he tweeted an image of a magazine cover ‘Dogue’, a play on fashion glossy Vogue, which many viewed as his support for Dogecoin.
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