Tesla Inc (NASDAQ: TSLA) this morning indicated in a filing that it has revised its investment policy to include alternative reserve assets, including “digital assets, gold bullion, gold exchange-traded funds and other assets as specific in the future.” The text following this announcement indicated that the company has invested an aggregate of $1.50 billion in bitcoin.
The change in policy was reportedly conducted in January 2021, with the intend of providing the company with “more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity.” The company also indicated that it expects to begin accepting bitcoin as a form of payment for the firms products in the near future, initially on a limited basis.
Finally, Tesla indicated that it intends to hold the assets long term, which may impact profitability as a result of accounting impairments that may be associated with holding the digital currency.
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The announcement follows a weekend where CEO Elon Musk repeatedly discussed digital currencies on his Twitter feed, with an emphasis being placed on that of Dogecoin.
The news notably follows the announcement last week that the company was required to issue recall notices on thousands of vehicles following faulty touchscreens.
Tesla is trading up 2.55% in pre-market trading to $873.50 following the news, while bitcoin has risen to $43,871.
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