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Tesla Hints at Reintroducing Support for Bitcoin Payments Soon

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Tesla Hints at Reintroducing Support for Bitcoin Payments Soon

Renowned electric vehicle manufacturer Tesla has hinted at accepting Bitcoin (BTC) payments again. The company disclosed its ambitions with the flagship digital asset in its September quarterly filing with the US Securities Exchange Commission (SEC).

In the filing, Tesla said it bought BTC worth $1.50 billion during the nine months ending September 30. The company added that it accepted BTC as payment for specific products in various regions during the three months, ending March 31 before terminating the service in May.

However, the company seems to renewed its interest in BTC, saying,

We may in the future restart the practice of transacting in cryptocurrencies (“digital assets”) for our products and services.

Tesla further noted that it believes in the long-term potential of digital assets as investments and as liquid alternatives to cash. The company further revealed that it might increase or minimize its BTC holding depending on business needs and its view of the crypto market and environmental conditions.

Factors pushing Tesla to reconsider BTC payments

This news comes after Tesla stopped accepting BTC for Payments in May after facing criticism for embracing the coin despite its mining harming the environment. Combined with China’s ban on BTC mining, this news saw BTC enter into a prolonged bear market that saw it trade as low as $28,893.62.

With China banning BTC mining, many mining firms moved west, seeking cheap, reliable energy and fair regulations. The US became a suitable destination for such firms, with jurisdictions like Miami offering to host them and offer affordable nuclear energy to power their rigs. States like Texas, New York, and Georgia have also housed mining firms, allowing them to tap into various renewable energy sources.

Although Tesla did not disclose how soon it looks to restore support for BTC payments, the crypto community holds Elon Musk, Tesla’s CEO, to his promise. While announcing that Tesla had suspended BTC payments, he said Tesla would resume accepting BTC payments when at least 50% of its hashrate is powered by renewable energy.

BTC continues trading sideways despite this news

While Tesla’s decision to embrace BTC earlier this year contributed to pushing BTC to its April ATH, hinting at resuming BTC payments has not impacted the coin’s performance. At the time of writing, BTC is changing hands at $61,904.58 after losing 2.02% over the past 24 hours.

Although BTC’s performance might seem unusual, considering Musk’s influence over the crypto market for the better part of this year, it is worth noting that the crypto market seems to have built resilience against his tweets.

A similar reaction is seen in Shiba Inu (SHIB), which maintained its gains despite Musk touting DOGE as the people’s cryptocurrency. While Musk’s tweet saw the SHIB plunge momentarily on Sunday, the coin recovered the losses and surged to a new ATH above $0.00004800 today.

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Jinia is a fintech writer based in Sweden focusing on the cryptocurrency market and blockchain industry. Besides Cryptotelegram, she has been writing for some renowned publications such as Cointelegraph, Invezz, etc for years. She also has experience in writing about the iGaming industry.

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