Tesla disclosed the investment in an updated January investment policy and Elon Musk’s pioneering electric car company also announced it expects to soon accept bitcoin in exchange for its products. Tesla founder Elon Musk has been a vocal advocate of bitcoin, regularly posting about the cryptocurrency on Twitter.
The news has caused turmoil in the already volatile cryptocurrency market
CoinDesk.com data indicates bitcoin is trading at £43,850 (£31,899) at 3.45pm GMT on Monday, February 8.
Tesla said in a stock market filing, it "updated its investment policy" last month and now wanted to invest in "reserve assets" including biotin, gold bullion or gold exchange-traded funds.
Tells also revealed it had already and could "acquire and hold digital assets" in the future.
READ MORE: Elon Musk sparks bitcoin frenzy: Tesla puts $1.5BN in currency
“It’s not surprising to see the new all time high so soon - as trust in cryptocurrencies grows and big companies, in this case, Tesla - recognise its potential use - not just as an investment, but as a mass day-to-day payment method
“I have no doubt that many companies will follow in the footsteps of Tesla.
“I’d like to add that besides influential feats like this one that create a sudden spike, the growth pattern we have seen in general over the last year clearly lays the path for the next leg up in Bitcoin's price cycle which could easily see it reach $100,000 this year.”
Samantha Yap Founder & CEO of YAP Global, said: "News of Tesla as one of the hottest tech stocks, putting $1.5 B into bitcion is just another big signal that mainstream adoption of Bitcoin is coming and inevitable."
Dermot O'Riordan, Partner of venture capital firm Eden Block, said: “The world's a stage and bitcoin is no longer a mere player.
This moment will likely be looked upon in years to come as a genuine tipping point; Elon and Tesla's support legitimises crypto and opens up Bitcoin to a whole new class of retail and institutional investors.
"It's exciting times for Bitcoin, as well as Ethereum, and the emerging global decentralised financial ecosystem. Now it seems all of Wall Street is in bed with this industry - if they weren’t paying attention before, they are now.”
Antonio Trenchev, Co-Founder and Managing Partner of crypto lender Nexo, added: “Elon Musk shilling DOGE and then buying Bitcoin resembles the mouth-watering BTC price predictions of Guggenheim’s Minerd — he shared a bombastic $400K target, the price erupted and the fund could only buy half as much BTC, so then he said everything was overbought.
"Sure, we love it when big names embrace digital assets, but we love it even more when you DYOR because Bitcoin has never been about entertainment.”
“Tesla and Bitcoin — the archetypes of volatility — inevitably meet again because they are tools that came about because of frustration and courage, to paraphrase the old saying.
"Frustration at the way things are, and courage to make sure that they do not remain as they are.”
Jason Cozens, Founder & CEO of fintech company Glint, said: "This is yet another wake-up call for the banking industry; an ever-growing number of consumers are making it absolutely clear that the current financial system does not work for them.
“The accessibility and potential returns available, as well as the longer-term boost to their purchasing power, outstrips traditional banking savings accounts which are bogged down by minuscule interest rates which causes savings to actually lose real value."
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