Tesla has announced that it has purchased $ 1.5 billion worth of bitcoin and would begin accepting the cryptocurrency as payment, according to a SEC filing on Monday.
The company said it bought bitcoin for “more flexibility to further diversify and maximize returns on our money.” The news makes Tesla the first automaker to accept the cryptocurrency.
Carson Block, founder of Muddy Waters Research, has doubts about any federal interference in CEO Elon Musk’s plans.
“The SEC just doesn’t have a success record against Elon Musk, so I expect any attempt will go in that direction, it would really just be a dead end.”
Dan Ives, director of stock research at Wedbush, sees benefits for the stock.
“This is Tesla and Musk diving into the deep end of the pool on crypto and it is something that has been around for a while, and in the end this is really the ones who put content behind his opinion. I think it is something the Street will have a different view of it, but in the end … this will certainly be seen as positive for the stock. “
Mike Novogratz, founder of Galaxy Digital, sees this as a groundbreaking step that other companies will take.
“Every business should look at how to accept digital currencies and digital payments as part of their business program. It’s not that difficult. It’s what customers want, it’s where the world moves. And so I think he’s leading the way. ., and I think you’ll see every company looking at how they could do that, from McDonald’s to Bojangles, you name it. ”
Mohamed El-Erian, chief economic adviser at Allianz, said this should give bitcoin a boost.
“What did Tesla tell you? Two things. One is that this will be a form of payment. And two is that this is an investment vehicle. So those are two powerful recommendations for the idea, I want to emphasize the idea, that bitcoins are a currency, a money, because money is, after all, a storehouse of value. Money is a form of payment. So yes, that will give further impetus. As for the response, it will be everywhere. Some will see As a visionary, others will say ‘Wait a minute, if I want to invest in bitcoin I’ll do it right away, I don’t need Tesla to do it for me’. … So you’ll see a whole bunch of responses, but for bitcoin holders, [Monday’s] good news.”
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