Bitcoin Prices Soar After Tesla Reveals $1.5 Billion Stake in Cryptocurrency .
On Monday, Bitcoin’s price soared 15 percent higher, spiking at around $44,000.
The cryptocurrency’s sharp jump was due to Tesla’s same-day announcement that it had bought $1.5 billion worth of Bitcoin.
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In a filing with the Securities and Exchange Commission, Tesla said they did so to create “more flexibility to further diversify and maximize returns on our cash.” .
Tesla also said that in the future, they “expect” to invest in digital assets and accept Bitcoin as a form of payment.
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We expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis.
, Tesla, via CNBC.
According to Wedbush analyst Dan Ives, Tesla’s investment will have a “ripple effect” across the globe.
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[Their stake] will have a ripple effect across corporations around the global … [It is a] potential game changing move for the use of bitcoin from a transactional perspective, Dan Ives, via CNBC.
Tesla’s investment is just the latest sign that cryptocurrency is becoming widely embraced.
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Fidelity Investments, Square and PayPal announced last year that they would allow their customers to utilize the digital asset.
