Tesla embraces the risks involved
Tesla in a filing with the U.S. Securities and Exchange Commission (SEC) has disclosed that it has invested $1.50 billion in Bitcoin as part of its updated investment policy and that the company expects to begin accepting Bitcoins as a form of payment for its products “in the near future” — initially on a limited basis.
In the second paragraph, Tesla explains that its decision is risky –
The prices of digital assets have been in the past and may continue to be highly volatile, including as a result of various associated risks and uncertainties. For example, the prevalence of such assets is a relatively recent trend, and their long-term adoption by investors, consumers and businesses is unpredictable. Moreover, their lack of a physical form, their reliance on technology for their creation, existence and transactional validation and their decentralization may subject their integrity to the threat of malicious attacks and technological obsolescence. Finally, the extent to which securities laws or other regulations apply or may apply in the future to such assets is unclear and may change in the future. If we hold digital assets and their values decrease relative to our purchase prices, our financial condition may be harmed.
As the news broke, Bitcoin prices inflated significantly. At the time of publishing this story, 1 BTC equals US$ 43,000 or INR 31.36 lakh.
Source: SEC
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