Tesla’s $1.5Bn Bitcoin Purchase Shoots Price Past $44,000, its Highest Ever Valuation
Bitcoin has reached an all-time high of over $44,000, following a $1.5 billion purchase by Elon Musk’s Tesla. Bitcoin has now smashed its previous record price of $40,367 attained in January.
The electric car manufacturer made the huge investment today, triggering a surge in bitcoin price to about $44,141, according to Coin Metrics. This represented a 15% jump from an opening day price of $38,380 for the world’s flagship crypto.
Tesla disclosed the record Bitcoin purchase in a filing with the Securities and Exchange Commission. The company stated that it wanted “more flexibility to further diversify and maximize returns on its cash.
Tesla also says it would accept Bitcoin as a means of payment for its electric cars “subject to applicable laws and initially on a limited basis.” The autotech giant’s $1.5 billion Bitcoin purchase is the largest ever by any company worldwide and serves as further proof that Tesla CEO and world’s richest man, Elon Musk is a big proponent of cryptocurrency.
Musk had recently changed his Twitter bio to #Bitcoin, which saw the crypto gain 25% to trade at $37,653. Apart from this, he has continued to endorse the dogecoin in a series of tweets for the past couple of weeks.
Tesla’s massive Bitcoin investment comes at a time when the Central Bank of Nigeria (CBN) has prohibited Nigerian banks from processing any crypto-related transactions. This has forced crypto exchanges such as Bundle, Binance and Luno to disable Naira deposits.
One wonders what the CBN knows that Elon Musk and Tesla don’t.
Tesla is not the only global corporation to invest in huge bitcoin assets. Microstrategy has already purchased over $1 billion worth of bitcoin since August 2020. Twitter CEO, Jack Dorsey’s Square has also invested $50 million into bitcoin assets.
The trend does not appear to be stopping anytime soon, and bitcoin may yet reach $100,000 in 2021.
If you’d like to get featured on our Entrepreneur Spotlight, click here to share your startup story with us.
Get latest Technology news, reviews, business-related content with a deliberate emphasis on the African narrative and insightful analysis in Nigeria – straight to your inbox.