Tesla’s BTC purchase pushed Bitcoin 20% up in a single day thereby giving nearly $500 million returns in a very short time. Tesla’s entry has sparked speculations of big corporations joining the BTC bandwagon in the near future.
A day after Tesla Inc (NASDAQ: TSLA) announced its $1.5 billion investment in Bitcoin, BTC price shot up to $48,000 levels on Tuesday, February 9. No doubt, Tesla is the only major reason that the Bitcoin price has surged all the way to new highs this week.
As BTC gained over 20% in less than 24-hours, Tesla’s Bitcoin investment value surged by $500 million in a single day. Interestingly, as it turns out, the 1-day Bitcoin (BTC) returns for Tesla were nearly 2/3rd of the company’s earnings for the entire 2020.
Tesla are already up over $500 million on their #Bitcoin investment, nearly outperforming their entire 2020 earnings of $721 million
— Bloqport (@Bloqport) February 9, 2021
However, topping the new all-time high above $47,600, BTC has called down a bit. At press time, Bitcoin is trading at a price of $45,738 with a market cap of $852 billion. Tesla’s entry helped propel Bitcoin valuations and help it move past the company’s own valuations.
Influence of Tesla on Bitcoin (BTC)
Speculations are ripe in the market that Elon Musk‘s entry can lead to other corporates joining the Bitcoin bandwagon very soon. Many are actively monitoring the developments at this stage. On Tuesday, February 9, Bitcoin evangelist Max Keiser said that tech giant Oracle could be the next to announce its Bitcoin investment.
SOURCE: Next big corporate #BTC buyer is Larry Ellison, Oracle
— Max Keiser, Sr. Bitcoin Adv. to Pres. Bukele 🇸🇻 (@maxkeiser) February 9, 2021
The world’s richest man Elon Musk has a massive following worldwide. His word certainly holds a lot of weight in the global business market. Thomas Hayes, managing member at Great Hill Capital LLC in New York told Reuters:
“If any lesser mortals had made the decision to put part of their balance sheet in Bitcoin, I don’t think it would have been taken seriously. But when the richest man in the world does it, everyone has to take a second look.”
Apart from 8% of its cash reserves into Bitcoin, Tesla has also announced accepting Bitcoin as payments against its car sales.
Bitcoin: Long-Term Store of Value & Corporate Playbook
Bitcoin is clearly emerging as a long-term store of value. Over the last few months, institutions have been purchasing heavily and moving their BTC into cold storage. MicroStrategy CEO Michael Saylor has shared his Bitcoin Corporate Playbook recently with everyone for free.
Saylor notes that governments worldwide are printing massive sums of money leading to the chances of major inflation in coming times. Thus the ideal strategy for corporates is to put extra cash at work and invest in strongly appreciating assets like BTC. In his latest interview with CNN, Saylor states:
“As corporations adopt #bitcoin as a treasury reserve asset on their balance sheets, they replace a non-performing asset with the best performing asset, choosing volatile appreciation over stable depreciation. This Bitcoin Strategy benefits all shareholders over the long term”.
Following the Bitcoin surge, the overall crypto market cap topped above $1.4 trillion. For Bitcoin (BTC) to continue its momentum, more institutional inflows are necessary.