Bitcoin Soars After Musk Says Tesla Now Accepting Payment In Bitcoin

Image Credits: Artur Widak/NurPhoto via Getty Images.

Tesla CEO Elon Musk tweeted in the early hours of Wednesday morning that Tesla customers can now officially pay for their cars with bitcoin.

The decision, announced in a series of early-morning (or late-night, depending on which coast you’re on) tweets from Musk, who said the option would only be available to American customers – though he said international customers would be able to use bitcoin as payment “later this year.”

What exactly does Tesla plan to do with that Bitcoin? According to Musk, any bitcoin paid to the company will be retained as bitcoin, not converted to fiat. Musk added that Tesla is operating its own bitcoin nodes (so the company presumably won’t need to depend on a third party like Goldman Sachs with its crypto trading desk).

Tesla, like a handful of far-less-high-profile companies, financed massive purchases of bitcoin with debt. The company announced its purchase of $1.5 billion in bitcoin in February.

Bitcoin rallied 5% after Musk’s tweets after treading water during most of the overnight session.

But even more so than bitcoin, so-called crypto stocks rallied hard on the news: Ebang (+9.7%), Riot Blockchain (+6.8%), Marathon Digital (+5.4%), Bit Digital (+5%) all rallied on the news, while Tesla shares ticked higher 1.1% (though it’s still red YTD). In Europe, the big winners were Argo Blockchain (+5.9%) and Arcane Crypto (+3.2%).