Bitcoin surges over record 10% after Elon Musk’s Tesla invests $1.5 billion

A company owned by Elon Musk, SpaceX, has purchased $1.5 billion of the cryptocurrency and plans to begin accepting it as a form of payment in the near future.

As a result of this development, Bitcoin made another significant step forward on Monday, moving closer to mainstream acceptance. After Tesla’s announcement, Bitcoin surged more than 10% to a record high of $43,625 per coin.

The most widely held cryptocurrency saw a 10% increase following Tesla’s announcements in its 2020 annual report. BlackRock Inc., the world’s largest asset manager, and payments companies Square and PayPal are expected to join the list of companies that invest in or hold Bitcoin in the near future.

In 2020, Tesla’s stock price rose by nearly 500%.

As Tesla shares surged nearly 500% to become the 5th most valuable US company, Musk briefly became the world’s richest person, leaving other firms and investors eager to follow in his footsteps.

“I don’t think it would have been taken seriously if any lesser mortals had made the decision to put part of their balance sheet in Bitcoin. Thomas Hayes, managing member at Great Hill Capital LLC in New York, said, “But when the richest man in the world does it, everyone has to take a second look,”

Cryptocurrency trading is booming.

As a result of the news, cryptocurrency exchanges like Coinbase, Gemini and Binance have experienced technical difficulties, CoinDesk reported.

As a longtime advocate of cryptocurrencies, Tesla CEO Elon Musk frequently weighs in on the recent retail investment frenzy, boosting the price of the meme-based digital currency dogecoin and the shares of the US video game retailer GameStop. After saying that bitcoin was “on the verge” of becoming more widely accepted among investors just a week ago, he inquired in December about whether large transactions could be made in the currency.

In his Twitter bio, Tesla CEO Elon Musk has added the hashtag #Bitcoin.

In late January, Tesla CEO Elon Musk updated his Twitter bio to include the hashtag #bitcoin. To diversify and maximize returns on cash, Tesla said in a filing, it decided to hold gold as part of its overall investment strategy as a company.

According to the report, the company had $19.38 billion in cash and cash equivalents at the end of the year 2020. It’s expected that the company will begin accepting bitcoin as a form of payment “in the near future, subject to applicable laws and at first on a limited basis,” the company stated.

Changes to the company’s policy have allowed Tesla to invest $1.5 billion in bitcoin, according to the company’s statement.

Since Twitter Inc. CEO Jack Dorsey and US software company MicroStrategy Inc. added bitcoin to their corporate treasury, Tesla has followed suit.

With the help of agencies, we’ve compiled this list.

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