On Monday 8th of February a huge investment step taken by Elon Musk’s Tesla, they have bought $1.5 billion worth of bitcoins.
Tesla had tried to change the dynamic of cars but still couldn’t sell as many cars as they have produced and expected to sell.
It’s a dangerous move that Tesla played because it doesn’t provide the stability if the cryptocurrency falls as we have encountered in the early times of bitcoin then Tesla would be in big trouble.
The company stated their decision of investment as “more flexibility to further diversify and maximize returns on our cash.” But it would only be applicable if things go on the right path.
This step also makes Tesla the very first automaker for its huge investment of $1.5 Billion in bitcoin.
In recent tweets of Elon Musk, he had already encouraged people to buy digital currencies and gave credit to cryptocurrencies for raising the prices on board.
Elon, Saylor, And Bitcoin
Elon Musk also added #Bitcoin on his Twitter bio on the 29th of January, which also gave the pure sign of his interest in digital currency.
It won’t affect only Tesla, but also Bitcoin as well, there’s no doubt Tesla got enough cash on their balance that they can spend without giving a single thought.
Looking in terms of business point of view, Tesla has made the right decision, holding enough cash and utilizing Bitcoin better than fiat currency.
Elon’s moves have always been surprising for the audience and especially for the Stock market. He plays with tweets and creates people wondering about his decisions.
Last year, Elon’s weird tweets went on viral and people thought he got too ‘High’ for that.
Before investing in Bitcoin, Elon Musk and Michael Saylor who is the micro-strategy and was the pioneer in putting his balance sheet in bitcoin.
Elon tweeted “If you want to do your shareholders a favor, convert $TSLA’s balance sheet to from USD to #BTC,” Saylor exhorted. “In time, it would grow to become a $1 trillion favor.”
He even confirmed from Saylor by tweeting “Are such large transactions even possible?” Elon also disclosed that they have used all of their corporate cash to buy bitcoin. As per Saylor, “Tesla made the very smart move.”
This all come down with the whole news section when they filed SEC which has the official statement about it.
Tesla’s this move is smart, but on the other hand risky too. From the morning updates, Tesla now shares more than 2% as expected and with this intelligent movie, they had already warned the investors about the unstable of bitcoin prices.
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