Elon Musk’s Tesla buys $1.5bn of Bitcoin causing currency to spike

SourceBBC
SectorFinancial Markets
CountryMiddle east

Image copyrightGetty Images Elon Musk's car firm Tesla has said it bought about $1.5bn (£1.1bn) of the cryptocurrency Bitcoin in January and expects to start accepting it as payment in future. The news caused the price of Bitcoin to jump 17% to $44,220, a record high. Tesla said it was trying to maximise returns on cash that is not being used in day-to-day running of the company. It comes days after Mr Musk added "#bitcoin" to his Twitter profile page, which drove up the price. He removed it days later, but has continued talking up Bitcoin and other cryptocurrencies, including Dogecoin, which jumped 50% after his endorsement. In a stock market filing, Tesla said it "updated its investment policy" in January and now wanted to invest in "reserve assets" such as digital currencies, gold bullion or gold exchange-traded funds. It said it had already bought $1.5bn of Bitcoin and could "acquire and hold digital assets" in the future. "Moreover, we expect to begin accepting Bitcoin as a...read more...