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| First Indexed | 2021-02-20 02:24:34 (5 years ago) |
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| Meta Title | Elon Musk explains Tesla's $1.5B bitcoin buy | Fox Business |
| Meta Description | Tesla Inc. CEO Elon Musk said the inability to receive a return on his companyâs cash was behind the decision to buy bitcoin. |
| Meta Canonical | null |
| Boilerpipe Text | Published
February 19, 2021 10:24am EST
'Bitcoin is almost as bs as fiat money.'
Tesla
Inc. CEO
Elon Musk
said the inability to receive a return on his companyâs cash was behind the decision to buy $1.5 billion ofÂ
bitcoin
.
Ticker
Security
Last
Change
Change %
TSLA
TESLA INC.
346.65
-6.17
-1.75%
Powered By
âWhen fiat currency has negative real interest, only a fool wouldnât look elsewhere,â Musk tweeted on Thursday evening.
Real interest rates are negative when the rate of inflation exceeds the nominal interest rate. Real yields, however, have been moving higher in recent weeks as investors fear the unprecedented amount of fiscal and monetary stimulus will bring back inflation. The 10-year real yield was around -0.8% on Friday while the 30-year real yield turned positive.
TESLA BUYS $1.5B IN BITCOIN, WILL START ACCEPTING FOR CARS
Tesla earlier this month announced the purchase of $1.5 billion of bitcoin in an effort to âfurther diversify and maximizeâ the return on its cash. Tesla ended 2020 with $19.38 billion in cash and cash equivalents, as noted in an SEC filing. It also noted it may soon accept bitcoin as payment for its cars.
Tesla said it may invest more of its cash in digital assets, gold bullion, gold exchange-traded funds and other assets.
ILHAN OMAR'S FINANCIAL TRANSACTION TAX WOULD HURT MAIN STREET: GAMESTOP HEARING EXPERT
The Fed has said interest rates will remain low through at least the end of 2023.
CLICK HERE TO READ MORE ON FOX BUSINESS
Muskâs decision to add bitcoin to Teslaâs balance sheet followed an exchange he had with MicroStrategy CEO Michael Saylor, who in December announced his company had accumulated $1.3 billion worth of the cryptocurrency.
MicroStrategy this week announced plans to raise $900 million through a convertible debt sale, saying it would use the proceeds to buy more bitcoin.
âBitcoin is almost as bs as fiat money,â Musk said. âThe keyword is âalmostâ.â |
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[Bitcoin](https://www.foxbusiness.com/category/bitcoin)
**Published**
February 19, 2021 10:24am EST
# Elon Musk explains Tesla's \$1.5B bitcoin buy
## 'Bitcoin is almost as bs as fiat money.'
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By Jonathan Garber [FOXBusiness](https://www.foxbusiness.com/)
[ Video](http://video.foxbusiness.com/v/6233082914001)
[Tesla](http://foxbusiness.com/category/tesla) Inc. CEO [Elon Musk](https://www.foxbusiness.com/category/elon-musk) said the inability to receive a return on his companyâs cash was behind the decision to buy \$1.5 billion of [bitcoin](http://foxbusiness.com/category/bitcoin).
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| [TSLA](https://www.foxbusiness.com/quote?stockTicker=TSLA) | TESLA INC. | 346\.65 | \-6.17 | \-1.75% |
| Powered By | | | | |
âWhen fiat currency has negative real interest, only a fool wouldnât look elsewhere,â Musk tweeted on Thursday evening.
Real interest rates are negative when the rate of inflation exceeds the nominal interest rate. Real yields, however, have been moving higher in recent weeks as investors fear the unprecedented amount of fiscal and monetary stimulus will bring back inflation. The 10-year real yield was around -0.8% on Friday while the 30-year real yield turned positive.
**[TESLA BUYS \$1.5B IN BITCOIN, WILL START ACCEPTING FOR CARS](https://www.foxbusiness.com/markets/tesla-buys-1-5b-in-bitcoin-will-start-accepting-for-cars)**
Tesla earlier this month announced the purchase of \$1.5 billion of bitcoin in an effort to âfurther diversify and maximizeâ the return on its cash. Tesla ended 2020 with \$19.38 billion in cash and cash equivalents, as noted in an SEC filing. It also noted it may soon accept bitcoin as payment for its cars.
Tesla said it may invest more of its cash in digital assets, gold bullion, gold exchange-traded funds and other assets.
[**ILHAN OMAR'S FINANCIAL TRANSACTION TAX WOULD HURT MAIN STREET: GAMESTOP HEARING EXPERT**](https://www.foxbusiness.com/markets/ilhan-omar-financial-transaction-tax-hurt-main-street-expert)
The Fed has said interest rates will remain low through at least the end of 2023.
**[CLICK HERE TO READ MORE ON FOX BUSINESS](http://foxbusiness.com/)**
Muskâs decision to add bitcoin to Teslaâs balance sheet followed an exchange he had with MicroStrategy CEO Michael Saylor, who in December announced his company had accumulated \$1.3 billion worth of the cryptocurrency.
MicroStrategy this week announced plans to raise \$900 million through a convertible debt sale, saying it would use the proceeds to buy more bitcoin.
âBitcoin is almost as bs as fiat money,â Musk said. âThe keyword is âalmostâ.â
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This material may not be published, broadcast, rewritten, or redistributed. ©2026 FOX News Network, LLC. All rights reserved. [FAQ](https://help.foxbusiness.com/hc/en-us/sections/4405278462107-FAQ) - [New Privacy Policy](https://www.foxbusiness.com/privacy-policy)
  
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| Readable Markdown | **Published** February 19, 2021 10:24am EST
## 'Bitcoin is almost as bs as fiat money.'
[Tesla](http://foxbusiness.com/category/tesla) Inc. CEO [Elon Musk](https://www.foxbusiness.com/category/elon-musk) said the inability to receive a return on his companyâs cash was behind the decision to buy \$1.5 billion of [bitcoin](http://foxbusiness.com/category/bitcoin).
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| [TSLA](https://www.foxbusiness.com/quote?stockTicker=TSLA) | TESLA INC. | 346\.65 | \-6.17 | \-1.75% |
| Powered By | | | | |
âWhen fiat currency has negative real interest, only a fool wouldnât look elsewhere,â Musk tweeted on Thursday evening.
Real interest rates are negative when the rate of inflation exceeds the nominal interest rate. Real yields, however, have been moving higher in recent weeks as investors fear the unprecedented amount of fiscal and monetary stimulus will bring back inflation. The 10-year real yield was around -0.8% on Friday while the 30-year real yield turned positive.
**[TESLA BUYS \$1.5B IN BITCOIN, WILL START ACCEPTING FOR CARS](https://www.foxbusiness.com/markets/tesla-buys-1-5b-in-bitcoin-will-start-accepting-for-cars)**
Tesla earlier this month announced the purchase of \$1.5 billion of bitcoin in an effort to âfurther diversify and maximizeâ the return on its cash. Tesla ended 2020 with \$19.38 billion in cash and cash equivalents, as noted in an SEC filing. It also noted it may soon accept bitcoin as payment for its cars.
Tesla said it may invest more of its cash in digital assets, gold bullion, gold exchange-traded funds and other assets.
[**ILHAN OMAR'S FINANCIAL TRANSACTION TAX WOULD HURT MAIN STREET: GAMESTOP HEARING EXPERT**](https://www.foxbusiness.com/markets/ilhan-omar-financial-transaction-tax-hurt-main-street-expert)
The Fed has said interest rates will remain low through at least the end of 2023.
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Muskâs decision to add bitcoin to Teslaâs balance sheet followed an exchange he had with MicroStrategy CEO Michael Saylor, who in December announced his company had accumulated \$1.3 billion worth of the cryptocurrency.
MicroStrategy this week announced plans to raise \$900 million through a convertible debt sale, saying it would use the proceeds to buy more bitcoin.
âBitcoin is almost as bs as fiat money,â Musk said. âThe keyword is âalmostâ.â |
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