Bitcoin continues to reach new all time highs following Tesla’s securities and exchange commission filing announcing the $1.5bn purchase to the US market watchdog. Tesla and SpaceX founder, Elon Musk, has admitted his love for digital currencies through his various social media platforms. Tesla said that it would start accepting the premier cryptocurrency as a form of payment in the near future. This comes after a number of different tweets from Musk labelling digital currencies as the ‘currency of the future’. Since the filing was made public on Tuesday, Bitcoin has rallied over 10% and is nearing $45,000. It’s safe to say that Musk’s game theory works at scale. The world’s wealthiest man has a cult-like following that hasn’t been seen before with the ability to manipulate asset prices at the click of a finger. Whether it be individual stocks, cryptocurrencies or a non-profit messaging service. Although the investment may look minuscule when compared to Tesla’s titanic market capitalisation of over $800bn, the investment represents around 15% of the company’s net cash on its books. This outlines the vast difference between Tesla’s share price and the fundamentals of the company. – Justin Rowe-Roberts
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By Lynn Thomasson and Eric Lam
(Bloomberg) – Bitcoin surged to an all-time high after Telsa said it’s invested $1.5bn and will begin accepting the cryptocurrency as a form of payment.
Prices jumped 10% to $42,595 as of 12:57pm in London. Tesla made the announcement as part of an update to its investment policy, according to a filing.
It’s another sign that the cryptocurrency is gaining widespread traction 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.
“If retail and institutional interest continues to grow over the next month, Bitcoin could target the $45,000 level,” said Edward Moya, a senior market analyst at forex broker Oanda.
