Elon Musk’s Bitcoin investment follows months of Twitter talk on cryptos




By Noel Randewich


(Reuters) – Tesla’s TSLA.O $1.5 billion investment unveiled on Monday may not surprise CEO Elon Musk’s followers on Twitter, where he has shown himself as a major proponent of the soaring cryptocurrency.



The announcement of Tesla’s investment, buried in Tesla’s 2020 annual report, follows months of tweets by Musk related to including BTC=BTSP, sometimes helping fuel its rally.


The cryptocurrency jumped 10% on Monday following Tesla’s disclosure.


 


Graphic: Musk’s tweets https://fingfx.thomsonreuters.com/gfx/mkt/qmypmwmwgpr/Pasted%20image%201612815114791.png


 


In a December exchange on Twitter, Musk asked MicroStrategy MSTR.O CEO Michael Saylor, who recommended buy Bitcoin, about the possibility of “large transactions” to convert some of Tesla’s balance sheet to the cryptocurrency.


Saylor is a Bitcoin bull and his software company has bought around 71,000 bitcoins, currently worth close to $3 billion. MicroStrategy’s stock jumped 18% on Monday, bringing its gain in 2021 to 146% as traders view it as a play on Bitcoin.


Replying in May to a tweet by author J.K. Rowling about Bitcoin, Musk wrote that massive debt taken on by central banks made Bitcoin more attractive. He added that he owned only a quarter of a bitcoin, which was trading below $10,000 at the time.


Last month, Musk added “#Bitcoin” to his Twitter profile, sparking a 14% surge in the digital currency, and in December he tweeted, “Bitcoin is my safe word.”


Driven in part by interest from institutional investors, the price of Bitcoin has quadrupled since in the past four months, surging far beyond record highs set in 2017. Some investors view it a hedge against inflation.


also said in its filing it would soon accept Bitcoin as a form of payment.


In chat on social media app Clubhouse that drew thousands of listeners earlier this month, Musk said Bitcoin was “on the verge” of being more widely accepted among investors.


 


(Story refiles to correct typo in paragraph 4)


 


 


(Reporting by Noel Randewich; editing by Megan Davies and Nick Zieminski)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link