Explained: Why has Tesla invested in bitcoin?

While Tesla’s may be the biggest investment in bitcoin by a consumer facing company, it is noteworthy that it does not hold the largest quantity of bitcoin for a single entity’s corporate treasury.

Monday that it invested $1.5 billion in bitcoin, making it the biggest investment by a mainstream corporation into the most popular cryptocurrency. In addition, the company also noted in a filing with the US Securities and Exchange Commission (SEC) that going ahead, it plans to start accepting the digital currency as a payment option for its products. Soon after Tesla’s announcement, the rate of bitcoin skyrocketed to an all-time high, breaching the $44,000-mark for the first time.