Tesla to Begin Accepting Bitcoin as Payment as Company Buys Billions Worth of Cryptocurrency

By Thomas Price Monday, February 8, 2021

As Cryptocurrencies have become more mainstream in recent years and in turn have skyrocketed in value, one of the major hurdles with making many of them genuinely viable as a currency has been what can actually be purchased with them once owned by an individual or a business. This is looking likely to change as major energy and EV company Tesla plans to begin accepting Bitcoin as a form of payment for purchases. This move comes as a massive moment for the cryptocurrency world. Legitimizing Bitcoin as a valid form of payment for regular commodities has already raised its value and could prompt many other companies and businesses to follow suit with Tesla in the near future.

Person holding "Bitcoin accepted here" sign.

Tesla’s Recent SEC Filing and Bitcoin Purchase

In a recent SEC filing, the energy and auto company made it clear that they intend to begin allowing for the purchase of any of their individual business products to happen with Bitcoin alongside more traditional forms of currency. While this can be seen as a major risk given the fluctuation of Bitcoin’s pricing as a cryptocurrency, it appears to be one the company is willing to take.

In fact, within the filing, the company acknowledges the risk they are taking on to their EV business stating, “While we intend to take all reasonable measures to secure any digital assets, if such threats are realized or the measures or controls we create or implement to secure our digital assets fail, it could result in a partial or total misappropriation or loss of our digital assets, and our financial condition and operating results may be harmed.”

Along with the acceptance of cryptocurrency as payment, the EV business also has made a large purchase of Bitcoin totaling a whopping $1.5 billion. According to the filing, once a purchase has been made with Bitcoin, the company may simply keep the payment in Bitcoin form, though liquidating it back into traditional currency is also an option.

Effect on Bitcoin and Precedence from the EV Company

After the business made this new plan public, Bitcoin benefited immensely. In fact, the cryptocurrency is currently up well over 10% on the day in value as enthusiasm from buyers grows. At the same time, the move is also proving to be beneficial for the EV business as well, with Tesla shares up over 2% in pre-market trading.

Tesla’s move here is a major step for both cryptocurrency and the automotive business as the company is now the first of all major auto businesses to accept any form of cryptocurrency as payment for a product. This could possibly spur similar actions from many other major car manufacturing businesses as well, pushing Bitcoin and other cryptocurrencies into legitimacy. The news of Tesla’s new acceptance of cryptocurrency comes two weeks after the CEO of the EV business, Elon Musk, put #bitcoin in his Twitter biography, creating several different pro-crypto tweets for Bitcoin along with popular cryptocurrency, Dogecoin.

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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