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Tesla said it bought $ 1.5 billion in bitcoin and started accepting cryptocurrency as payment, according to an SEC filing on Monday.
The company said it bought bitcoin for “more flexibility to further diversify and maximize returns on our cash.” The news makes Tesla the first automaker to accept cryptocurrency.
Carson Block, founder of Muddy Waters Research, doubts any federal interference in CEO Elon Musk’s plans.
“The SEC just isn’t having success against Elon Musk, so I would expect any effort in that direction to go, it would just be a dead end at the bottom.”
Dan Ives, managing director of equity research at Wedbush, sees an advantage for the action.
“It’s Tesla and Musk diving into the depths of the crypto pool and it’s something that has been rumored for some time, and finally now it’s really them who are putting substance behind it. his point of view. I think it’s something that the street will have a different view of, but in the end… that will definitely be seen as a benefit for the action. “
Mike Novogratz, founder of Galaxy Digital, sees this as a pioneering initiative that other companies will adopt.
“Every business should consider how to accept digital currencies and digital payments as part of their business agenda. It is not that difficult. This is what customers want, this is where the world goes. And so I think he’s getting a head start. , and I think you’re going to see every business trying to figure out how they could, from McDonald’s to Bojangles, you name it. “
Mohamed El-Erian, chief economic adviser at Allianz, said this should give bitcoin a boost.
“What did Tesla tell you? Two things. First, it will be a form of payment. And second, it is an investment vehicle. So these are two powerful endorsements for the concept, I want to stress the notion, that bitcoins are a currency, a currency, because after all, money is a store of value. Money is a form of payment. So yes, this will create a new momentum. the reaction, it’s going to be all over the place. Some will see it as a visionary, others will say “wait a minute, if I want to invest in bitcoin, I will do it straight away, I don’t need Tesla to do it for me . “… So you will see a whole range of reactions but for bitcoin holders, [Monday’s] good news.”
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