Elon Musk and Tesla purchased $1.5 Billion worth of bitcoin for tesla’s balance sheet. This is one of the most iconic events to happen to bitcoin. As soon as this news was announced, bitcoin soared to new highs of $47,000.
*Note: Our Premium Investors, were notified one week ago to double down on blockchain stocks. We originally sent Mara at 95 cents, and it is a staggering $38 now. $950 would be worth $38,000. We sent out a notification to double down on mara last week at $17, and we sent two more bitcoin/blockchain stocks that we believe will 100x in 3 months. By being a premium subscriber for $10 a month, you will have access to all our stock plays. Our favorite thing is hearing how our stock plays pay for the entire subscription almost instantly*
Why is Tesla buying bitcoin such a big deal?
First, Tesla is a Fortune 500 aka one of the biggest 500 companies in the world. Second, if a CFO of a large corporation wants to make this same type of transaction, it will remove any career risk that this CFO might be under for making the same decision.
Tesla would never do something like this, if there was any chance of regulatory scrutiny for this decision, so this will allow CEOs to consider adding bitcoin to their balance sheet as the dollar gets weaker.
- Tesla’s $1.5 billion purchase is approximately 15% of their net cash position. Most investors and companies slowly dip their toe in the water with 1-2% allocations, but Elon went heavy with the double digit allocation from day one.
- The announcement of Tesla’s purchase led to a $5,000+ move in the Bitcoin price. If we assume a $35,000 purchase price over the last few weeks, Tesla would be up approximately 25% on the $1.5 billion purchase already.
- Tesla’s entire mission is to create a sustainable and environmentally friendly business. There is no chance that they would buy Bitcoin if they believed that there was a significant detrimental impact on the environment from the asset.
- (Citation: Anthony Pompaliano)
Every individual and corporation will be forced to make a decision regarding bitcoin. The US dollar is being printed at crazy and scary rates, and this will inflate the dollar making it worthless. Bitcoin is becoming the asset that people and buisnesses can turn to during the chaos of the markets and inflation. Bitcoin will allow protection of purchasing power over the next days, months, and years.
How does this affect our stock plays? As I mentioned above, we are very long on all bitcoin and blockchain related plays.
Stay Hungry, Stay Long,