Donald Trump’s media group and Tesla are among a growing number of companies purchasing large amounts of bitcoin.
Tokyo: Bitcoin hit a record high on Thursday during early Asian trading, surpassing $124,000, driven by favourable US legislation and a rise in US equities.
The cryptocurrency rose above its previous July record, briefly exceeding $124,500 before retreating.
Meanwhile, U.S. President Donald Trump’s media group and Tesla, the electric carmaker owned by billionaire Elon Musk, are among a growing number of companies purchasing large amounts of bitcoin.
Analysts say the moves are aimed at diversifying reserves, hedging against inflation, and attracting investors. Companies also often hold bitcoin, the world’s largest cryptocurrency by market capitalisation, to participate in sector activities such as “mining,” the process of validating transactions in exchange for digital tokens.
Tesla has previously accepted payments in bitcoin, while Trump Media soon plans to offer crypto investment products.
Other players who had core operations totally unrelated to cryptocurrency, such as Japanese hotel business MetaPlanet, have switched to buying bitcoin.
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