Elon Musk, the legendary electric carmaker, has sounded the market about moving “large transactions” from the balance sheet of Tesla, Inc. to Bitcoin. This was brought out in a Twitter exchange with Michael Saylor, CEO of Microstrategy Inc. Michael is a prominent player in the digital currency field and has advised Musk to shift USD to Bitcoin to boost the net worth of the company further. Musk had earlier sought Saylor’s views on Twitter and has been suitably recommended.
Why is investing in Bitcoin a preferred option now that has led Saylor to suggest it to Musk on Twitter?
Bitcoin is going through an unprecedented surge in value crossing $23,000 this week for the first time. This has led investors to race for Bitcoin and be a part of this rally, even though they have to pay a significant mark-up for acquiring the crypto. According to Bloomberg, so great is this surge that the price of the Bitwise 10 Crypto Index Fund has risen a staggering 650% above the value of holdings. If Musk invests now in Bitcoin, the value of his shareholdings in Tesla will go through the roof.
It all started with a tweet by Musk that he was tempted to invest in Bitcoin that has this year alone almost tripled in value. Taking up the cue on Twitter, Saylor, in a series of Tweets, encouraged Musk to invest in Bitcoins. He predicted that once Musk takes the plunge, other firms on the S&P 500 would follow too, and the returns would be in trillions of dollars.
Saylor has also assured Musk that large transactions in Bitcoin are possible and that many investors are going that route. Saylor himself has purchased more than $1.3 billion in Bitcoin and has offered to share offline his “playbook” with Musk.
As for Musk and his fortunes, it has been a great year for him. Tesla is to start trading on the S&P Index 500 as a member from Monday. The company has seen a massive eight-fold surge this year. Musk’s personal fortune has grown by over $140 billion, making him the second-richest person in the world as per estimates released by Bloomberg Billionaires Index.