TSLA vs BTC: Bitcoin Valuations Surge Past Tesla after Its BTC Purchase

UTC by Bhushan Akolkar · 2 min read
TSLA vs BTC: Bitcoin Valuations Surge Past Tesla after Its BTC Purchase
Photo: Depositphotos

Tesla’s Bitcoin purchase has provided Bitcoin the much-needed catalyst to break past all resistance and hit a new all-time high at $47,500. With over a 22% rally in the last 24-hours, BTC overtakes Tesla’s valuations.

On Monday, February 9, the world’s largest automobile company Tesla Inc (NASDAQ: TSLA) announced a $1.5B Bitcoin (BTC) purchase. This provided the much-needed rocket fuel for Bitcoin to break past its previous resistances. In the last 24-hours, Bitcoin (BTC) is up over 22% hitting its new all-time high above $47,500.

Tesla’s Bitcoin purchase has created a much-needed frenzy as investors rushed to grab the slice of BTC. Interestingly. Bitcoin has moved past Tesla’s own valuations with the current rally. At press time, Bitcoin (TC) is trading at a price of $46,424 with a market cap of $861 billion.

However, on Tuesday closing, Tesla stock was trading 1.31% up at $863 levels with a market cap of $818 billion. In the Monday announcement, Tesla (TSLA) said that it will soon start accepting payments in BTC for its new car purchases.

Tesla has become the first among the top-ten global companies to invest part of its reserve cash into Bitcoin. As per the company books, the automobile giant holds $19 billion in cash reserves. Thus, the $1.5 billion investment in Bitcoin is sizeable enough. Tesla’s entry into the crypto market has sparked curiosity as to which other giants can expose their reserve cash to BTC.

If the tech four tech giants are to put a similar weightage (10%) of their cash reserves into BTC, we are looking at another $50 billion entering into Bitcoin.

Will Corporate America Follow Tesla (TSLA)?

For a while, analysts have been saying that Bitcoin (BTC) adoption among corporates is imminent. Business intelligence firm MicroStrategy which has already invested $1.5 billion into BTC so far has aggressively pitched to corporates during the recent Bitcoin World 2021 Conference. MicroStrategy CEO Michael Saylor has also shared his Bitcoin Corporate Playbook for free.

Other industry players have joined the chorus in saying why other big corporates will soon follow Tesla’s actions. Speaking to Bloomberg, Fundstrat Global Advisors including David Grider said:

“We see fundamental reasons for corporate crypto treasury exposure and expect others to follow suit. We don’t think this happens overnight, but we do think there’s much more room for corporate treasury penetration and expect the trend to continue.”

With the current price rally, BTC is more than 60% year-to-date and now dominates nearly 63% of the overall cryptocurrency market cap. It will be interesting to see as to which big company is the next in joining Bitcoin.

Bitcoin News, Business News, Cryptocurrency News, Market News, News
Related Articles