Tesla Corporation (TSLA) caused financial turmoil on Monday after the US Securities and Exchange Commission confirmed that the electric vehicle manufacturer had added bitcoin (BTC) to its balance sheet.

Tesla’s latest 10,000 model for the fiscal year ending December 31, 2020 shows that $ 1.5 billion is earmarked for bitcoin. As Bitwise researcher David Loant points out, Tesla’s exposure to BItcoin accounts for roughly 7.7% of the total cash position.

He extracted these numbers from cash and cash equivalents from Tesla, which totaled profit margins of $ 19.4 billion at the end of 2020, or $ 9.8 billion after deducting debt and financing leases.

It places Bitcoin purchases from Tesla at the top of the corporate tax list. Only one other company – MicroStrategy – has acquired more digital assets as part of its strategic reserves.

News of Tesla’s involvement in the bitcoin market drove prices up on Monday. As Cointelegraph reported, Bitcoin’s price peaked at around $ 45,000, easily surpassing its previous peak. Bitcoin’s market value exceeds $ 800 billion for the first time.

In addition to adding BTC to its balance sheet, Tesla plans to approve the digital asset as a payment method. In addition, the received BTC will not be paid in cash, but will be added to the balance.

Tesla is leading the way in adopting Bitcoin at a critical moment in the beef market. Given Elon Musk’s penchant for changing markets, Tesla’s newly discovered Bitcoin presence could accelerate adoption in the short term.

Bitcoin has also generated interest from large companies. Last week, Microstrategy webinar about buying bitcoins recorded over 1,400 records.

Source: CoinTelegraph

LEAVE A REPLY