After publicly backing digital currencies such as Bitcoin and Dogecoin, Tesla CEO Elon Musk has walked the talk, lending more credibility to cryptocurrency investing.

Tesla said it has invested an aggregate $1.5 billion of cash in bitcoin, in line with a change in the investment policy adopted by the audit committee of its board in January, the company revealed in its 10-K filing with the Securities and Exchange Commission.

The decision is meant to provide more flexibility to further diversify and maximize returns on its cash that’s not immediately needed to maintain operating liquidity.

The company also left open the scope of acquiring and holding digital assets from time to time or long-term, the filing revealed.

Going a step further, Tesla said it will begin accepting bitcoin as a payment option for its products on a limited basis in the near future, subject to applicable laws. The bitcoin received as sales proceeds may or may not be liquidated upon receipt.

Tesla also disclosed the risks associated with its decision to hold digital assets. Any decrease in fair value below carrying values would require recognition of impairment charges, and this may impact profitability in the periods in which such impairments occur even if the overall market values of these assets increase, the company said.

Ron Baron of Baron Capital, a Tesla board member, remarked on the investment: “I’m sure a lot of thought went into the bitcoin purchase by Tesla and I look forward to learning the rationale,” he told CNBC.

Why It’s Important: Bitcoin, along with most other digital currencies, is rallying. Last week, Musk said in a conversation on Clubhouse that after staying on the sidelines over the years, he is now a supporter of Bitcoin.

Musk’s tweet supporting Dogecoin sent the digital currency rallying to new highs.

MicroStrategy has been a pioneer among publicly-traded companies in opting for a Bitcoin treasure chest.

At last check, Bitcoin was trading 12.39% higher at $43,537.402. Tesla shares were up 2.4% to $872.70.

This story originally appeared on Benzinga.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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