Today in an sec filing, Tesla disclosed that it has acquired $1.5 billion in bitcoin, the popular cryptocurrency. Moreover, the company noted that it may also accept bitcoin in the future as a form of payment for its cars, though it did allow that there is some regulatory uncertainty around that effort.
As the news broke, the price of bitcoin instantly rose by around 7% to more than $40,000 per coin.
Tesla had previously telegraphed, that it had an interest in the cryptocurrency, however to purchase such a large block of the coin is notable.
In its filing, Tesla writes that earlier this year it “updated [its] investment policy to provide [it] with more flexibility to further diversify and maximize returns on [its] cash that is not required to maintain adequate operating liquidity,” adding that it has the option of putting cash into “certain alternative reserve assets” that include “digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future.”
Under that banner, the firm has “invested an aggregate $1.50 billion in bitcoin,” going on to say that the well-known electric car company “may acquire and hold digital assets from time to time or long-term.”
That’s enough wiggle room for Tesla to do whatever it wants with its cash and the crypto markets.