Tesla Sends Shockwaves Across The Financial Markets After US SEC Confirms Tesla's Addition Of Bitcoin
Tesla Sends Shockwaves Across The Financial Markets After US SEC Confirms Tesla’s Addition Of Bitcoin
February 11, 2021
Tesla Sends Shockwaves Across The Financial Markets After US SEC Confirms Tesla's Addition Of Bitcoin
Tesla Sends Shockwaves Across The Financial Markets After US SEC Confirms Tesla’s Addition Of Bitcoin
February 11, 2021

Report said that Tesla (TSLA) sent shockwaves across the financial markets on February 8 (Monday) after the United States Securities and Exchange Commission (US SEC) filing confirmed its addition of Bitcoin (BTC) to its balance sheet.

It has been reported that Tesla’s latest Form 10-K filing for the fiscal year ended December 31, 2020, shows a $1.5 billion allocation to Bitcoin.

However, as Bitwise researcher David Lawant points out, Tesla’s Bitcoin exposure represents around 7.7% of its gross cash position. 

The report said that he derives those figures from Tesla’s cash and equivalents, which netted a gross of $19.4 billion by the end of 2020, or $9.8 billion net of debt and finance leases. Tesla’s Bitcoin purchase puts it near the top of the corporate treasuries list. Only one other company, that is, MicroStrategy, has purchased more of the digital asset as part of its strategic reserves. 

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According to the report, news of Tesla’s participation in the Bitcoin market sent prices soaring on Monday. The BTC price has crossed $47,000, easily surpassing its previous peak. Bitcoin’s market cap exceeded $800 billion for the first time. 

In addition to adding BTC to its balance sheet, Tesla plans to accept the digital asset as a mode of payment, as the BTC it receives will not be liquidated for cash but added to its balance sheet.

Thus, Tesla is spearheading Bitcoin adoption at a crucial time in the bull market. Given Elon Musk’s propensity to move markets, Tesla’s newfound Bitcoin exposure could hasten retail adoption in the short term.

Source: Cointelegraph


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.