Two of the hottest investments in the world just collided.

Tesla’s iconoclastic chief executive Elon Musk announced today that his company has purchased $1.5 billion in Bitcoin and will begin accepting payments in the cryptocurrency. Buoyed by the news, investors flooded into the most popular cryptocurrency, pushing it up almost 14% to nearly $44,000 as of writing.

At this time last year, one Bitcoin was worth slightly less than $10,000.

This latest development is more than just Musk being Musk. In its annual report, Tesla said it added $1.5 billion in Bitcoin as part of a larger policy to earn more on its cash that it doesn’t need to keep the company going. This alternative reserve will also look into gold bullion, gold exchange traded funds (ETFs), and potentially other assets in the future.

The company, which is valued at slightly less than $900 billion, also said that it plans to begin taking Bitcoin as payment “in the near future.”

Demand for the cryptocurrency exploded upon the announcement.

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@BLUEPHIL posted 3 years ago

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