Tesla has officially joined a growing list of publicly traded companies piling bitcoin onto their balance sheet. The announcement via SEC filing comes less than one week after business intelligence outfit, MicroStrategy, hosted a two-day virtual conference explaining the merits of holding bitcoin as part of a corporate investment strategy, and providing the playbook for best practices for execution. As loose monetary policy continues on a global scale, companies like Tesla, MicroStrategy, and Square are using bitcoin as a way to maintain the value of their cash earnings over a longer, less certain time horizon.
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Game changer? $1.5 Billion in bitcoin now on Tesla's balance sheet
“One of the largest companies in the world now owns Bitcoin and by extension, every investor that owns Tesla (or even just an S&P 500 fund) has exposure to it as well.”
Van Lindberg, a San Antonio, Texas Partner at Taylor English Duma LLP, has made headlines in his groundbreaking quest to advocate for...
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Breaking: Bitcoin surges to new all-time high amid news of Tesla investment https://t.co/wFgMypwnsB pic.twitter.com/13fSWgTF1i— Bloomberg Markets (@markets) February 8, 2021
Assuming that Tesla and Elon Musk bought Bitcoin over the last couple of weeks, we can use an estimated purchase price of $35,000.— Pomp 🌪 (@APompliano) February 8, 2021
If that is the case, they would already be up about 25% on the $1.5 billion purchase.
It is smart business for corporations to own Bitcoin.
Tesla has acquired around $1.5 billion in Bitcoin under an investment policy at the electric car maker headed by Elon Musk, and it plans to begin accepting the digital currency as payment for vehicles soon. https://t.co/uChWOem2GU— ABC News (@ABC) February 8, 2021