The rapid growth of institutional investments in the leading cryptocurrency, Bitcoin, has continued to rise. The digital asset that was overlooked years ago by many, criticized by a few prominent figures, has now become the toast of many looking towards it as a means of profit.
Individual investments in Bitcoin had also tripled in the last 12months, contributing to the asset breaking into the top 10 most valuable companies globally if it were a company. Tesla, a car production company, owned by the richest man in the world, Elon Musk, is now the latest institutional investor in the cryptocurrency. It has committed about $1.5 billion of its treasury to Bitcoin.
Musk had spent a while flirting around Bitcoin
Elon Musk’s presence on social media these days has been influencing cryptocurrency assets like Bitcoin and Dogecoin. The billionaire investor’s company Tesla had recently announced via a filing with the U.S Securities and Exchange Commission (SEC) that it had committed the $1.5 billion into Bitcoin in a bid to maximize the fortunes of the company and add value to the lives of their shareholders.
In their official statement, the company reaffirmed that the move is a strategic one targeted at diversifying their profit means. They have also invested undisclosed sums of money in traditional assets like gold. This is not coming as a surprise as Musk has been parading around the digital asset on social media, Twitter, for a while now.
It should also be remembered that last December, Micheal Saylor, CEO of Microstrategy, had offered to help Elon Musk go through the Bitcoin investment procedure if the Billionaire ever considered it. It is unsure whether Saylor had helped out. Still, the good news is that Musk has now committed $200 million more than the $1.3 billion of Micheal Saylor’s Microstrategy in Bitcoin investments.
Bitcoin had gone bonkers since Musk purchase
The new move into the Bitcoin family by Musk and Tesla has further shown the firm belief in the cryptocurrency, a move which will profit the cryptocurrency in the long run. The reaction to the news of Musk finally committing to Bitcoin has been met with applause on popular social media, Twitter. Micheal Saylor had sent his congratulations to the dogged Billionaire, citing that he has done the world a big benefit by investing in cryptocurrency.
Tim Draper, one of the company’s foremost investors who had earlier urged Musk to buy Bitcoin last month, had also congratulated Tesla and believes they have made a move that will put a smile on everyone’s face in the long run. Bitcoin itself had reacted to the news of Tesla acquiring it by gaining more than 20% in the last 24hours and currently surpassing its previous ATH of $40,000. The digital assets are currently at an all-time high market cap of $864 billion and currently trade at about $46,200 at writing.