Infotech

Tesla reveals it bought $ 1.5 billion worth of bitcoin in January



Posted on Feb 8, 2019 2021 at 15:21Updated Feb 8, 2019 2021 at 18:46

As unconventional and uninhibited as Elon Musk’s disruptive group, bitcoin has found new support and godfather. Tesla announced Monday that it had acquired $ 1.5 billion worth of bitcoin in January and with a view to long-term holding. This investment represents 7.7% of its cash ($ 19.4 billion). Tesla considers that bitcoin is a volatile asset but sufficiently “liquid” (sellable quickly without suffering a drop in price) to be considered an equivalent to “cash”. The fall in the price of bitcoin may however have a negative impact on its subsequent results while its rise will not have a positive effect as long as the bitcoins are not sold. Tesla will count bitcoins as “Intangible assets with indefinite useful life”.

Tesla’s announcement boosted the price of the cryptocurrency, which soared beyond $ 44,000, before falling back to $ 43,714 (36,345 euros), up 15%. After PayPal in October, it’s Tesla’s turn to trigger a new boom in bitcoin.

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