With cryptocurrencies becoming increasingly attractive to high-net-worth individuals, it is no wonder that more are looking to possibly convert their portfolios. Elon Musk, the chief executive of Tesla Motors, recently inquired into such a possible move on Twitter, sparking conversations between crypto bulls and skeptics.
Bitcoin: Too Tempting to Ignore
On Sunday, Musk took to Twitter to share a meme describing how much Bitcoin had been attractive to him recently. The meme went viral, with many believing that Musk was looking to covert some portion of his reported $146.3 billion wealth into the leading cryptocurrency.
— Elon Musk (@elonmusk) December 20, 2020
This isn’t Musk’s first brush with Bitcoin. In 2019, he explained that he only owned 0.25 BTC, which he got from a friend. While the billionaire had called cryptocurrencies “brilliant,” he explained that he didn’t have any actual holdings. It is unclear whether he has since bought up any more units of the cryptocurrency since then.
Musk’s recent tweet drew reactions from some notable names. Michael Saylor, the chief executive of business intelligence firm MicroStrategy, replied to the billionaire, counseling that Musk could convert Tesla’s balance sheet to Bitcoin. As Saylor explained:
“If you want to do your shareholders a $100 billion favor, convert the $TSLA balance sheet from USD to #BTC. Other firms on the S&P 500 would follow your lead & in time it would grow to become a $1 trillion favor.”
MicroStrategy famously ditched cash for crypto this year, purchasing $425 million in Bitcoin in August. The asset’s value has almost doubled since then, providing significant financial gains for the Virginia-based company.
The firm doubled down recently, announcing a $650 million capital raise. As explained, MicroStrategy will use the capital to purchase more Bitcoin.
It is entirely unclear how Tesla could make a similar move. The company has had a significant surge in 2020, with the stock trading at $695 at press time – giving the firm a $658 billion valuation. Yahoo! Finance data showed that the company had $34 billion in total assets for last year. 2020’s surge would have brought this number much higher, and converting this value to Bitcoin would be near impossible.
Musk noticed this, asking Saylor if a transaction on such a scale is possible. Replying, Saylor explained that he had purchased over $1.3 billion in Bitcoin this year, offering to share his playbook with Musk.
Doge Surges on a Musk Reference
Musk spent his Sunday mulling on several subject and not just Bitcoin. The Tesla billionaire tweeted a Dogecoin reference in a separate tweet and changed his Twitter bio to read “former CEO of Dogecoin.”
The tweet sent Dogecoin on a surge, with the asset’s price jumping from $0.003947 to $0.004831 at press time. Musk has tweeted about the meme-inspired digital asset before, claiming in July that he foresaw a Dogecoin standard future. The tweet sent Dogecoin surging 14 percent.