Bitcoin Jumps Near $45k as Tesla Buys $1.5 Billion in BTC

Bitcoin’s price soared to an all-time high near $45,000 apiece after Tesla revealed a big stake in the world’s largest cryptocurrency.

February 8, 2021 | AtoZ Markets – Tesla Elon Musk has invested $1.5 billion in bitcoin. This is stated in an application filed with the US Securities and Exchange Commission (SEC). The electric car maker said it intends to integrate the first cryptocurrency as a means of payment for products in the future.

Bitcoin price reaches $44,800

According to the document, in January 2021, Tesla updated its investment policy to be more flexible in diversifying and maximizing revenue from funds that are not required to maintain operational liquidity. A part of them the company can invest in “certain alternative reserve assets”, including cryptocurrencies.

As a result of this announcement, Bitcoin price soared to a new all-time high of $44,892 on Bitstamp cryptocurrency exchange. At the time of writing this article, however, Bitcoin is trading at $43,640.

The capitalization of the flagship cryptocurrency for the first time exceeded $800 billion. At the time of writing, the figure is $816.4 billion, according to CoinMarketCap.

Digital Currency Group founder Barry Silbert noted that Tesla joined analytics software provider MicroStrategy and asset manager Grayscale Investments in its decision to invest in Bitcoin.

MicroStrategy CEO Michael Sailor thanked Musk for adding Bitcoin to Tesla’s balance sheet.

In December 2020, Musk asked Saylor if $100 billion of transactions were possible on the Bitcoin network. In response, the CEO of MicroStrategy spoke about the purchase of the first cryptocurrency worth $ 1.3 billion and offered to share an action strategy.

The founder of Tesla and SpaceX has spoken out several times about Bitcoin. Earlier in February, as part of a conversation on the Clubhouse media platform, the entrepreneur identified himself as a supporter of digital gold.

Prior to that, Musk posted the Bitcoin hashtag on his Twitter profile. After that, the asset price reached $38,250 on the Bitstamp exchange.

Recall that the text of one of Musk’s tweets was inserted into block # 668 197 of the Bitcoin network.

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