Electric carmaker Tesla disclosed today (8 February) that it has bought $1.5 billion worth of bitcoin, according to a filing with the SEC.

Tesla also said it would start accepting payments in bitcoin in exchange for its products making it the first major automaker to accept bitcoin as payment.

“In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximise returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future."

"Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term."

"Moreover, 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, which we may or may not liquidate upon receipt.” the company said in a filing.

Bitcoin prices surged to new highs on Monday (8 February) following Tesla's announcement, reaching a price of at least $43,200.