Bitcoin and cryptocurrency markets were poised for a bombshell from Tesla’s first TSLA results since buying $ 1.5 billion worth of Bitcoin. And Elon Musk did not disappoint.
Tesla announced that it sold 10% of its Bitcoin holdings in March, raised $ 101 million from sales, and helped the electric automaker land its seventh consecutive profitable quarter. The news that initially sent shock waves through the cryptocurrency community was tempered somewhat by Musk’s defense that the sale was only intended to demonstrate Bitcoin’s “liquidity”.
Bitcoin price, after falling slightly on the news, was boosted by Musk’s comments on Twitter when he suggested building his personal Bitcoin stake.
Elon Musk, CEO of Tesla and SpaceX, has emerged as one of the biggest supporters of Bitcoin and Crypto … [+]
“I haven’t sold any of my bitcoin,” Musk said on Twitter, responding to Barstool Sports founder Dave Portney’s allegations that Musk dumped Tesla’s bitcoin to “make a fortune.”
It is not known exactly how much Bitcoin or other cryptocurrency Musk owns. In 2018, Musk said he had “literally no cryptocurrency other than 0.25 bitcoin” – which at today’s prices would be worth almost $ 14,000.
“So Elon Musk personally owns Bitcoin?” asked a popular Bitcoin fan account on Twitter.
Bitcoin price, after falling below $ 50,000 per bitcoin last weekend, has rebounded this week as its rally picked up pace following the Telsa and Musk revelations. Bitcoin price soared to $ 55,000, making the total of 18.6 million bitcoin tokens in circulation worth over $ 1 trillion.
Bitcoin price has risen despite Tesla billionaire Elon Musk unveiling the electric car maker … [+]
The 2021 Bitcoin rally, in which the Bitcoin price doubled from just under 30,000 US dollars at the turn of the year, was heavily reinforced by Musk and Tesla.
While Musk has been a well-known and vocal advocate of Bitcoin and other cryptocurrencies for years, Tesla only recently added Bitcoin to its balance sheet and then started accepting payments in Bitcoin.
“So far, [bitcoin] has proven to be a good decision, a good place to put some of our money that isn’t immediately used in day-to-day operations, “said Zachary Kirkhorn, Tesla’s chief financial officer, whose official job title is Master of Coin to call about the company’s revenue.
Tesla’s purchase of Bitcoin, following in the footsteps of US business intelligence firm MicroStrategy, forced others to take Bitcoin seriously as a store of value and an alternative to cash reserves.
Bitcoin, meanwhile, has been bolstered by the long-awaited emergence of institutional support from Wall Street, launched by notable investors who called Bitcoin as an inflation hedge last year.