Musk’s Tesla says it invested $1.5 billion in bitcoin, prices surge to record at $44,000

Bitcoin jumped to a new all-time high on Monday after Tesla said that it had bought $1.5bn worth of the cryptocurrency in January. In a regulatory filing, the carmaker said it changed its investment policy last month to allow it more flexibility to “diversify and maximise” returns on its cash, after which it made its chunky investment in the digital currency. “We invested an aggregate $1.5bn in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term,” the filing said. The announcement has spurred bitcoin to run to a new record high of $44,100. Bitcoin has been on an strong run since last year, despite fears of a growing bubble in the cryptocurrency, with its value increasing nine times since its collapse in March last year. Tesla also said it expects to accept bitcoin as a form of payment for its products soon. The carmaker is the latest consumer-facing company to venture into cryptocurrency markets, following PayPal and other household names. Analysts said the announcement from Tesla could spur further demand.

SOURCE: FINANCIAL TIMES