Bitcoin hit a new all-time high Tuesday to a ludicrous value of $47,711 per coin. This was a 20% jump from Monday’s closing price of $39,871.80.
The price of Bitcoin rallied on Monday after Tesla CEO Elon Musk announced that his company had bought roughly $1.5 billion worth of the world’s most popular cryptocurrency.
Musk disclosed the investment to the U.S. Securities and Exchange Commission. After news broke out of Tesla’s investment, the price of Bitcoin immediately climbed by more than 14%. Tesla’s share price was down 0.56% Tuesday.
The amount of Bitcoins Musk bought is equivalent to about 10% of Tesla’s total cash reserve. It is currently the biggest corporate acquisition of Bitcoins ever reported.
Musk said that Tesla will soon be accepting Bitcoin as payment for its products. The billionaire entrepreneur said that the investment is simply a way for him to maximize Tesla’s cash, most of which are not being used in its day-to-day operations.
According to its latest filing with the SEC, Tesla has roughly $20 billion in standby cash and cash equivalents.
Musk has recently become a so-called Wall Street influencer on social media as any post he makes about a company or investment is immediately followed by market movement.
“I do at this point think that Bitcoin is a good thing, and I am a supporter of Bitcoin,” Musk said in a post.
Recently, Musk tweeted about another cryptocurrency called Dogecoin. His tweet sent the value of the cryptocurrency to nearly 1,000 above its original price before Musk had mentioned it on social media.
