Musk Sets Clean Energy Target to Resume Accepting Bitcoin

Elon Musk told Cointelegraph Sunday that Tesla will soon be accepting bitcoin again for purchases of Teslas. Just as soon, that is, as bitcoin “miners” retool their industry to around 50% clean energy to maintain and update transactions on the world’s oldest cryptocurrency blockchain.

He said in a tweet:

“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”

It was in response to an article reporting the remarks of a high tech consulting company’s CEO, characterizing Tesla’s sale of bitcoin in May, following a massive buy in Jan, as a “pump and dump.”

Musk’s exceptional success and notoriety, and his unrelenting joking on Twitter have been as problematic for SEC regulators as accounting for bitcoin has been for Tesla’s finance team. Musk noted that Tesla’s sale of bitcoin was actually a matter of understanding how to remain in regulatory compliance:

“This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.”

Bottom Line: Bitcoin represents the first of an entirely new class of digital securities. While most corporations still regard the cryptocurrency as too volatile and risky to expose shareholders to on their balance sheets, Tesla isn’t the only company taking on the headache of venturing into this innovative financial space.

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