Diversified tech giant Tesla has made an outsized $1.5 billion buy of the cryptocurrency Bitcoin and may soon accept it as payment for his company Telsa’s electric vehicles, Kallanish finds in a filing with the US Securities and Exchange Commission.

Cryptocurrencies are electronic currencies that transcend national borders and derive their value from the processing power and electrical energy used to “mine” or create them. They also derive perceived value from their holders and can be used as both a medium of exchange and a store of value - albeit a highly volatile one. 

Tesla frontman Elon Musk had been making a splash on Twitter by promoting a popular but low-valued cryptocurrency dubbed Dogecoin, which has since skyrocketed in value. Bitcoin’s price likewise reached an all-time high following the mainstream media breaking of Tesla’s buy. 

Following a decision to diversify the company’s assets, Tesla “invested an aggregate $1.5 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 says in its filing.

On 9 February, a single Bitcoin was valued at $45,877 with a total market cap of about $854 billion. Bitcoin was introduced in 2009 and crossed the $1/Bitcoin threshold in 2011. 

A Tesla Model 3 costs $37,999 before incentives.