Electric car maker Tesla is known for breaking convention. That apparently extends to using your own corporate cash to buy Bitcoin.
The company revealed in its annual report on Monday that it had purchased $ 1.5 billion worth of cryptocurrencies, as part of an initiative started last month to invest in alternative assets such as digital currencies and gold bars. He added that he hoped to start accepting Bitcoin as a form of payment in the near future to earn money by toptips4u.com.
Tesla said it had $ 19.4 billion in cash and equivalents as of December 31.
Other companies, including payment processor Square and business intelligence software provider MicroStrategy, have publicly said they were investing corporate cash in Bitcoin. Tesla is perhaps the most prominent company to do so.
The CEO of the automaker, Elon Musk, is known for promoting cryptocurrencies on his Twitter account, which is widely followed. More recently, he has applauded Dogecoin, a digital token that started as a joke but whose price has soared after Musk encourages it.
In December, Musk said on Twitter that Bitcoin was almost as unstable as the common currency. Previously, he had criticized the efforts of central banks to relax monetary policy to support the economy as massive issuance of foreign exchange to earn money by toptips4u.com.
His statements on Twitter about him have caused problems for Musk, who recently became the richest man in the world. In 2018, he and Tesla reached a settlement with the Securities and Exchange Commission after he said he had secured funding to take Tesla public at $ 420 a share. Funding for the effort was not as advanced as Musk did, and the S.E.C. required him to resign as chairman of Tesla. He and the company had to pay $ 20 million each in fines.
Under that agreement and a revised agreement, he and the S.E.C. Achieved in 2019, a Tesla attorney must approve any Twitter post in which Musk discusses the company's financial condition, earnings forecasts, and other important information The revised agreement came after the securities regulator requested that Musk is in contempt of court for violating the 2018 agreement with a post, which had not been reviewed by an attorney, about the number of cars Tesla would produce and deliver in. 2019.
Musk, who has more than 46 million followers on Twitter, has also used the social media platform to fuel a stock frenzy at GameStop, the troubled video game retailer. And last year, he criticized the way elected officials and others were responding to the coronavirus pandemic, writing last March that the number of confirmed virus cases would be close to zero by the end of April.
In this case, Tesla has discretion in how it wants to invest its corporate cash, as long as its board follows proper corporate governance guidelines, said J. Ashley Ebersole, a partner at the Bryan Cave Leighton Paisner law firm.
The wisdom of making an assignment to something like Bitcoin is not inherently problematic, he said.
Bitcoin hit a record high after Tesla's announcement, surging more than 10 percent in Monday morning trading to more than $ 44,000 per coin.
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