Billionaire Elon Musk Bitcoin Relationship is nothing new and Tesla automaker earned $ 1 billion in 9 months of 2021 thanks to investments in bitcoin. In February, the company bought digital coins for $ 1.5 billion, when the rate of the world’s first cryptocurrency was $ 38,000.In October, Bitcoin has risen in price and is now trading at $ 58,000.Thus, Tesla became the owner of digital assets for almost $ 2.5 billion.
Tesla now owns 43,200 bitcoins worth almost $ 2.5 billion. According to Coinmarketcap , this is about 65%, or $ 1 billion, more than the amount that the automaker invested in buying crypto in early 2021.
Elon Musk Bitcoin Saga
Due to his status, Elon Musk is familiar with Tesla’s investment strategy. After the automaker announced a $ 1.5 billion investment in BTC, accusations of insider trading fell on Elon Musk Bitcoin Relationship. It was assumed that he purchased bitcoin in advance, and then exited the deal as soon as the rate rallied amid a statement from Tesla’s board of directors. On the other hand, when submitting documents to the SEC, the commission did not notice anything suspicious.
In February, Elon Musk announced that Tesla bought 48,000 bitcoins for a total of $ 1.5 billion. In March, the company sold 10% of the coins and earned $ 101 million. This increased the manufacturer’s total profit for January-March by 27 times.
Elon Musk himself called Tesla’s investment in bitcoin risky. The entrepreneur hinted that it was not he who made this decision. Around the same time, the billionaire wrote that the price of bitcoin and other popular cryptocurrency Ethereum seemed somewhat overpriced to him.
In May, the bitcoin rate collapsed to $ 37,000 and until October did not rise above $ 55,000. Moreover, after the complete ban of cryptocurrencies in China, analysts expected the bitcoin price to consolidate below $ 40,000. But there were several events that had a positive effect on the value of the cryptoasset.
First, Federal Reserve Chairman Jerome Powell said that the regulator did not intend to ban cryptocurrencies in the United States. At the same time, the Iranian authorities lifted the restriction on mining for licensed market participants. At the end of September, good news for cryptocurrency lovers came from El Salvador: they started mining bitcoin there using the energy of a volcano.
On October 14, the value of bitcoin rose to a record $ 58,535, according to data from the Binance crypto exchange.
Earlier, experts from the Cambridge University business school calculated that Russia increased its share in global bitcoin mining from 6.8% in June 2021 to 11% in October. Thus, the country entered the top 3 world earners of the first cryptocurrency.
Following Elon Musk Bitcoin Relationship saga, he announced that Tesla acquired $ 1.5 billion worth of bitcoins and is going to accept them as payment. Recognition from a large top manager gave legitimacy to this cryptocurrency, and this had a positive effect on its rate: on the same day, it went up in price by 16%. Over the year, the cost of bitcoin has increased fivefold. After Elon Musk Bitcoin Relationship turned 180 degrees, the bitcoin rate collapsed by 15%, to $ 46 thousand, but then won back the fall a little and rose to $ 50.98 thousand, writes Bloomberg .
The Tesla founder called cryptocurrencies “a good idea” and expressed confidence in their future, but added that they are now too expensive for the environment. Musk has promised to resume accepting Bitcoin payments as soon as transactions become less expensive. The entrepreneur also did not rule out the use of other, more “green” cryptocurrencies. This is not the first time that Musk’s tweet has led to a rise or fall in exchanges. Earlier, the Elon Musk Bitcoin effect was experienced by the Clubhouse social network , the Signal messenger, GameStop, the Dogecoin cryptocurrency and the game developer Cyberpunk .