NotSure wrote:BobbyD wrote:Musk has confirmed Tesla haven't sold BTC after his latest ill advised tweet...
Indeed. But what about before?
He's either done an extremely transparent pump and dump (I assume any trades will have to be reported in due course?) or he has saddled Tesla with $1B of depreciating twitcoin he can't even sell!
Yes, but it all depends on what happens to bitcoin.
Say there are some changes to how bitcoin is mined, Musk then says how much better things are and bitcoin reverses to the upside.
It seems very unlikely to me that bitcoin will vanish, there are too many people in it and prepared to stomach volatility for potential future gains.
Meanwhile, FIAT currency looks to be being devalued via the huge Prez Biden print.
I have no idea where all of this goes, but in the by and by 1billion in btc on the balance sheet might not look so bad, at worst it goes to zero then about 1in 20 or 5% of Tesla's cash will have vanished. I doubt many Tesla investors will lose sleep over that when there are so many other things to consider.
As things are the buy and part sale of bitcoin generated profits that eat up a good bit of Musk's compensation in the last quarter.
Regards,
PS it would be dangerous for Musk to say Tesla has sold no bitcoin and then later for the company to disclose earlier sales, if so potentially setting up Tesla for another scrap with the SEC.