Tesla has announced it has bought $ 1.5 billion in bitcoin and will begin accepting the cryptocurrency as payment, according to the SEC filing Monday.
The company said it bought the bitcoin for “more flexibility to further diversify and increase yield on our currency. “The news makes Tesla the first automaker to adopt the cryptocurrency.
Carson Block, founder of Muddy Waters Research, is skeptical of any federal breach of CEO Elon Musk’s plans.
“The SEC is not just on the record of success against Elon Musk so I expect any effort that goes that way, it would basically be a dead end.”
Dan Ives, managing director of equity research at Wedbush, sees an upside for the stock.
“This is Tesla and Musk diving into the deep end of the era on crypto and it’s something that has been reported for some time, and ultimately this is for him. they really put content behind his idea.I think it’s going to be a different view of the Street of, but in the end … this is definitely seen as a positive for the stock. “
Mike Novogratz, founder of Galaxy Digital, sees this as a positive move that other companies will embrace.
“Every company should look at how they accept digital currencies, digital payments as part of their business scheme. That’s not that difficult. This is what customers want, it’s this is where the world is moving in. And until i think it is getting ahead of the curve., and i think you can see every company looking out how could they, from McDonald’s to Bojangles, give you a name. “
Mohamed El-Erian, Allianz’s chief economic adviser, said this should boost bitcoin.
“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 reinforcements for the idea, I want to emphasize the idea that bitcoins are a currency, a currency, because after all money is a source of value.Money is a form of payments.So if , that will build more momentum.As in terms of the reaction, it will be all over the place.Some see as a vision, others say ‘wait a minute, if I want to invest in bitcoin, I will do it exactly, I don’t need Tesla to make it for me. ‘ … So you’re going to see a wide range of ideas but for bitcoin holders, [Monday’s] good news. “
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