Monday, 8 February 2021

Tesla’s $1.5B Bitcoin Buy Amounts to 15% of The Company’s Net Cash Holding

Tesla’s $1.5B Bitcoin Buy Amounts to 15% of The Company’s Net Cash Holding

Tesla’s $1.5B Bitcoin Buy Amounts to 15% of The Company’s Net Cash Holding

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Following the news about Tesla’s billion-dollar investment in bitcoin, analysts reveal that the Elon Musk-led company invested around 15% of its net cash into the flagship cryptocurrency.

As reported by CryptoPotato earlier today, Tesla made headlines across the crypto verse after it invested $1.5 billion into bitcoin, as revealed in a 10k form filing with the U.S. SEC.Meanwhile, David Lawant, a Research Analyst at Bitwise Asset Management, tweeting shortly after the bitcoin investment, noted that the company put in up to 15% of its cash equivalent in BTC.According to Lawant, the SEC filing showed that Tesla has $19.4 billion in gross cash or $9.8 billion in net cash.With the above figures, the Bitwise research analyst noted:“Using these figures as a reference, $1.5 billion in #Bitcoin represents an allocation of 7.7% on gross cash or 15.1% on net cash.”

Also, Tesla’s BTC investment positively affected the price of bitcoin, with the BTC price reaching a new all-time high of $44,000.There were speculations back in December 2020 about whether Tesla would join the bitcoin bandwagon when Elon Musk asked Microstrategy CEO Michael Saylor questions about BTC.At the time, the MicroStrategy CEO advised Musk to convert the TSLA balance sheet from USDT to BTC.Saylor, in a later interview, stated:“If Tesla puts $1 billion dollars (in BTC) they will double their money within 12 months. If they put $2 billion in, they will probably generate a $10-billion gain. By the way, anybody could do it. If you’re a billionaire hedge fund guy, you put a billion into Bitcoin, just put it out on the wire and say you did it.”

Title: Tesla’s $1.5B Bitcoin Buy Amounts to 15% of The Company’s Net Cash Holding
Sourced From: cryptopotato.com/teslas-1-5b-bitcoin-buy-amounts-to-15-of-the-companys-net-cash-holding/
Published Date: Mon, 08 Feb 2021 17:57:42 +0000

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Tesla’s $1.5B Bitcoin Buy Amounts to 15% of The Company’s Net Cash Holding


Tesla’s $1.5B Bitcoin Buy Amounts to 15% of The Company’s Net Cash Holding was originally published here https://newsarrivals.wordpress.com/2021/02/09/teslas-1-5b-bitcoin-buy-amounts-to-15-of-the-companys-net-cash-holding/

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