Tesla describes Bitcoin as ‘a liquid alternative to cash’

05/03/2022

1 minute read

2022.05.03 00:31

One man’s meat is definitely another man’s poison. While billionaire Warren Buffett recently lashed out at Bitcoin as an unproductive asset, Tesla (NASDAQ:TSLA), in a recent SEC filing, has lauded Bitcoin’s liquidity and long-term potential.

In a recent filing with the US Securities and Exchange Commission, Tesla Inc. reaffirmed its pro-Bitcoin stance, dubbing the asset “a liquid alternative to cash.”

According to the filing, the electric car maker is still holding onto its Bitcoin from the quarter prior. As reported by BTC PEERS, Tesla invested a whopping aggregate of $1.5 billion in Bitcoin during the first quarter of 2021. In the filing at that time, the company provided information on how the investment would “provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity.” An excerpt from the latest filing reads:

In the first quarter of 2021, we invested an aggregate $1.50 billion in digital assets. The fair market value of such digital assets held as of March 31, 2022 was $1.96 billion. We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash. As with any investment and consistent with how we manage fiat-based cash and cash equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and our view of market and environmental conditions.

Speaking of Warren Buffet, Bitcoin supporter and Mexican billionaire Ricardo Salinas Pliego took time out to rebuke the comments of the former. According to him, Buffett is old and immune to change.

It’s sad to see him rambling on about a suubject he clearly does not understand. That’s why the future ALLWAYS belong to the young and not the OLD. https://t.co/2L5Lc8zHjE

— Ricardo Salinas Pliego (@RicardoBSalinas) May 1, 2022