As in the dreams of major BTC admirers, Tesla announced on Monday that it had bought Bitcoin worth $ 1.5 billion.
In documents filed with the SEC, the company said it bought Bitcoin in order to have "more flexibility to further diversify and maximize returns on cash." Tesla also said it will begin accepting Bitcoin payments in exchange for its products "subject to applicable laws and initially on a limited basis". This would make Tesla the first major automaker to accept virtual currency as a payment. So Elon Musk's explanation for the purchase is to give the company liquidity to be able to accept payments in BTC. Practically, technically, to give the change.
Tesla's move to Bitcoin represents an investment of a percentage of the company's cash. The company had more than $ 19 billion in cash and cash equivalents at the end of 2020, according to its most recent filing, so $ 1.5 billion is 7.8% of corporate cash.
Two weeks ago, the Tesla-owned billionaire added the hashtag #bitcoin to his Twitter bio, in a move that helped to quickly push the cryptocurrency's price up to 20%. Two days later, he said on the social media chat site Clubhouse: "At this point I think Bitcoin is a good thing and I am an advocate for it."
Of course, after the announcement, BTC went through the roof and reached $ 43,000 …
I don't need to tell you when news of Elon Musk and Tesla got out. Of course Elon has prepared this speculation well, and who knows how many BTC he had put in his pocket, even before this announcement. Sorry, but "Thinking wrong makes you sin, but you get it right", and I can't help but have the doubt that Musk has studied all this to indirectly round up his personal liquidity. Among other things, having BTC is a bit like having a portion of liquidity invested in a foreign currency, only with extreme volatility. How much does the financial risk for the company increase?
However, the speculative shorts on BTC also went to their lows.
On the plus side, if a central automaker starts accepting BTC as consideration for cars, if only for a balance in the financial structure, it will be pushed to try to pay a fraction of the suppliers with virtual currency. This could also lead to a greater diffusion in the use of BTC, and this is a very positive element in the medium term.
For the rest, this "Gift" by Elon Musk reminds me of Virgil: "Timeo Danaos, et dona ferentes". Or as they say in my part: not even the leaves on the trees move for free.
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/tesla-compra-15-miliardi-di-dollari-in-btc-cresce-la-quotazione-ben-oltre-40-mila-dollari/ on Mon, 08 Feb 2021 18:25:11 +0000.