This Is The Reason Tesla Invests Tens Of Trillions Of Money In Bitcoin

This is why Tesla invests Bitcoin (Tesla)

JAKARTA - Many people wonder why Tesla made a massive Bitcoin purchase some time ago. The reason was disclosed by the Chief Financial Officer (CFO) of Tesla, Zach Kirkhorn.

The Tesla Master of Coin said that Elon Musk's company had invested US $ 1.5 billion or the equivalent of Rp.21 trillion into Bitcoin. Kirkhorn revealed that the company believes Bitcoin is suitable for long-term investment despite its high volatility.

The electric car company bought Bitcoin in February 2021, the company then withdrew as much as 10 percent. The investment made by Tesla has a positive impact because Bitcoin has contributed as much as 101 million US dollars to Tesla's profits.

Tesla's finance department, which has a Master of Coin title, revealed the reasons for choosing Bitcoin. He and his leader, Elon Musk, have difficulty finding a place to store company funds that can provide appropriate returns. In addition, another factor is safe liquidity while waiting for the completion of the construction of new factories in Austrin (USA) and Berlin.

“You know, there aren't many traditional opportunities to do this or at least we didn't find it. We also talk to other people so we get input. Most of them provide low yields without taking additional risks or sacrificing liquidity, ”he said as quoted by Tech Crunch, Tuesday, April 27.

“At that time Bitcoin met our requirements and so far it has proven to be a good decision. A good place to store cash that is not immediately used for daily operations or may not be needed until the end of the year, and can get a return from there, ”added the Tesla Master of Coin.

Kirkhorn explained that Tesla's financiers had been watching the cryptocurrency closely. Apart from that, they also have many factors that make them optimistic about cryptocurrencies in the future.

“You know from a corporate treasury perspective, we are quite pleased with the amount of liquidity in the Bitcoin market. Our ability to build our position to be first was very fast. When we sold it later in March we were able to execute it very quickly, "he said.

"When we think about business risk management in terms of global liquidity, the ability to get money in and out of the market is something that I think is very important for us (the company)."

Apart from that, the Tesla Master of Coin also intends to keep the Bitcoin it has bought for a long time. They also allow cryptocurrency owners to buy Tesla cars with Bitcoin.