The American Securities and Exchange Commission (SEC) received the Annual Report on the Securities Exchange Act from Tesla and it appears that the company invested $ 1.5 billion dollars in Bitcoin.
The company of the acclaimed Elon Musk, which leverages the market with every tweet about cryptocurrencies, has made it official that it is now another private institution, listed on the American Stock Exchanges, investing in crypto.
The 126-page document cites the word Bitcoin 9 times.
In Part 1 of the document, Item 1A - “Risk Factors, Topic - We Hold and Can Purchase Digital Assets That May Be Subject to Volatile Market Prices, Deterioration and Unique Risks of Loss” (page 23), the word appears for the first time .
In it, Tesla informs that:
“In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize the returns on our cash that are not needed to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we are able to invest a portion of that money in certain alternative reserve assets, including digital assets, gold bars, gold-traded funds and other assets, as specified in the future. After that, we invested a total of $ 1.50 billion in Bitcoin under this policy and we can acquire and maintain digital assets from time to time or in the long term ”
In the continuation of the text, Tesla informs that it even expects to start accepting Bitcoin as a form of payment for our products in the near future.
According to the company, the procedure is "subject to applicable laws and initially in a limited way, which we may or may not settle on receipt".
On page 33 in the Topic - “Operating Expense Trends”, the text described above is almost completely repeated.
On page 46, in the Topic - “Liquidity and Capital Resources”, the text is repeated again, but Tesla also declares that “we believe that our Bitcoin assets are highly liquid. However, digital assets may be subject to volatile market prices, which can be unfavorable at the time when we want or need to liquidate them ”.
Finally, in “Note 23 - Subsequent Events” (page 106), the same text quoted from the other times ends the appearances of the term Bitcoin in the Document.
Possibly due to this the price of Bitcoin jumped by more than 15% and reached $ 44,918 dollars on the exchange Binance.
Thus the new historical top of Bitcoin was registered.
On January 8, Bitcoin had registered its historic top at $ 41,900, but after that it was corrected and returned to the $ 28,800 on January 22.
After the fall, the price was sideways with a slight rise to $ 40,000 on February 6.
The year 2020 was marked by the entry of institutional investment in cryptocurrencies, mainly in Bitcoin.
There is speculation that this year 2021 is the year of Ethereum (ETH), where the institutional may start to see the second largest cryptocurrency in the world as a great investment opportunity.
Not only, with the expansion of decentralized finance protocols and applications (DeFi), Ethereum is still the biggest bet of price appreciation.
However, many Altcoins have developed higher than these two cryptocurrencies, and have had a strong appreciation from the end of 2020 to the present.
This year promises a lot for the crypto world, and in addition to retail investors, institutional investors are looking at a good part of this market share.
