Letter #6: The Real Reason Behind Tesla's $1.5 Billion Bitcoin Purchase
Tesla purchased $1.5 Billion dollars worth of Bitcoin. One might think that such a large purchase would have come with a significant amount of fanfare from the Company itself, especially since Elon Musk, the Company’s CEO, is well known for boasting about cryptocurrency, stocks, and anything else that crosses his mind to his millions of Twitter followers. But rather than blasting the news out on social media or sharing a press release on Tesla’s website, the Company covertly inserted a few references to its new position on Bitcoin in a regulatory filing with the U.S. Securities and Exchange Commission (SEC).
Unless you’ve been living under a rock or have otherwise been out of sync with social media, the news media, and your “crazy” uncle who loves Bitcoin, you know the effect that Tesla’s purchase has had on Bitcoin and the Bitcoin community. The price of Bitcoin skyrocketed 10% within 30 minutes of the news becoming public, smashing the all-time high of almost $42,000 USD set exactly one month ago today. As of publication, the price of Bitcoin is currently sitting at just over $46,000, which is around $2,000 dollars below the new all-time high price of over $47,500 set just a few hours ago. It’s been quite a day for Bitcoin.