28.10.2021

Tesla invested $ 1.5 billion in Bitcoin and became the second largest owner of the cryptocurrency

The $ 1.5 billion investment in Bitcoin has made Tesla the second largest organization that owns cryptocurrency as a direct investment. The first place in this indicator is occupied by the analytical giant from Wall Street MicroStrategy, headed by CEO Michael Saylor.

At the same time, with the filing of Saylor, MicroStrategy began actively buying bitcoins at the end of last summer, which made a huge contribution to the subsequent increase in the price of the digital asset. And now this hobby can become massive.

Recall that the actions of Tesla became known yesterday, as the company filed a corresponding document with the US Securities and Exchange Commission. The results are as follows: the automotive giant invested $ 1.5 billion in Bitcoin, the decision was approved by the company’s management, and in addition, the company plans to accept cryptocurrency as payment for its products.

Many analysts agreed that this initiative of Tesla can become a turning point for the world of cryptocurrencies, which can now move into a phase of mass popularity. At a minimum, there are practically no barriers to investing in BTC and other cryptocurrencies for other companies now. And the fact that the maximum number of bitcoins is limited only contributes to the activation of investors.

Tesla and Bitcoins

The decision of the Tesla management to bet on Bitcoin was the reason for the establishment of a new historical maximum value of the cryptocurrency. Recall that shortly before this, Elon posted the hashtag Bitcoin in the biography of his Twitter account, which also provoked the rapid growth of BTC. In addition to a major investment, Tesla is also going to make the main cryptocurrency one of the means of payment for its goods and services.

We checked the current data: now Bitcoin is estimated at $ 47,739. And this is an absolute record of the indicator, the level of which the cryptocurrency reaches for the first time. Note that due to the current growth, the price of BTC has increased by 42.6 percent over the week. At the same time, this indicator jumped by 381 percent over the year. Here is a graph of the asset’s behavior for the last three months. As you can see, at the beginning of this period, it was estimated at about 15 thousand dollars.

Michael Saylor, at a recent virtual summit with industry leaders from 16 countries, said that investing money reserves in crypto is now the only most profitable strategy:

If your company has money on its balance sheet and it is in currencies like euros and dollars, they lose about 15 percent of their purchasing power every year. A simple solution is to convert some of this money into bitcoins.

Now the leaderboard among BTC-holding organizations according to Bloomberg looks like this. The first place is taken by MicroStrategy with crypto reserves worth $ 3.1 billion, followed by Tesla, then the Galaxy Digital Foundation, Marathon Patent Group and Square, co-founded by Twitter CEO Jack Dorsey.

Note that there are significantly more bitcoins in the Grayscale Bitcoin Trust – we are talking about at least 649 thousand BTC in the amount of $ 31 billion. However, this cryptocurrency is intended for trust clients, while MicroStrategy, Tesla, Square and other similar companies have invested money in coins exclusively for themselves.

By the way, Michael Saylor himself welcomed Elon Musk’s decision with such a quote on Twitter.

Congratulations and thanks to Elon Musk and Tesla for adding Bitcoin to their balance. The whole world will benefit from this leadership.

Of course, the decision to invest such a huge amount could not be made spontaneously in one day. Moreover, Tesla clearly accumulated one and a half billion bitcoins over a certain period of time. Recall that in December 2020, Saylor addressed Musk with the following message.

If you want to provide your shareholders with a $ 100 billion service, convert the TSLA balance from US dollars to BTC.

As you can see, Elon clearly listened to Michael’s advice and joined the bitcoin accumulation race. It should be noted that there are still very few cryptocurrency owners at such a high level among large organizations in the world. And as soon as other companies follow the example of Elon and Michael, the price of Bitcoin will clearly reflect this.

We believe that the future of cryptocurrencies at the moment seems brighter than ever. Now they will clearly be considered a full-fledged means of saving value and also an important step towards a new model of the economy. Now it remains to wait for other giants to join the “party”.

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