Musk enquires about moving large transactions to bitcoin
SAN FRANCISCO: Elon Musk inquired about converting “large transactions” of Tesla Inc.’s balance sheet into bitcoin in a Twitter exchange with Michael Saylor, a prominent booster of the digital currency.
In a series of tweets, Saylor, chief executive officer of Microstrategy Inc., encouraged the billionaire to shift US dollars from the electric-car maker to bitcoin and “do your shareholders a $100 billion favour.”
“Other firms on the S&P 500 would follow your lead and in time it would grow to become a $1 trillion favor,” Saylor added in his tweet on Sunday.
The exchange came after Musk posted a suggestive image indicating that he’s tempted by bitcoin, which has more than tripled in value this year.
“Are such large transactions even possible?” Musk tweeted in response to Saylor. Numerous people assured him they are, as well as Saylor, who said he had purchased more than $1.3 billion in bitcoin and offered to share his “playbook” offline.
Bitcoin’s surge to record highs has investors racing for exposure to the rally—even if it means paying a high markup. As the largest cryptocurrency rocketed above $23,000 for the first time this week, the mania pushed the price of the Bitwise 10 Crypto Index Fund as much as 650% above the value of its holdings, according to data compiled by Bloomberg.
Tesla has had an eight-fold surge this year. The gains propelled Musk’s own fortune after adding $140 billion to his $167 billion net worth, making him the world’s second-richest person, according to the Bloomberg Billionaires Index.
Tesla slides on first day of S&P 500 trading Meanwhile, Tesla Inc. shares fell 6.3% in pre-market trading on Monday as the electric vehicle maker marks its trading debut on the S&P 500 Index.
Futures contracts on the S&P 500 plunged 2.5%, following European stocks lower after several major countries moved to suspend travel from the UK.
Tesla has catapulted 731% this year in anticipation of the historic inclusion, making it the biggest company ever to be added to the benchmark. The EV pioneer will also be joining the S&P 100, replacing oil and gas firm Occidental Petroleum Corp., which fell 12% pre-market.
At the end of the day, Tesla shares closed at an all-time high. More than $150 billion worth of Tesla shares traded on Friday, ahead of the index inclusion. Market strategists have been divided on how the addition of the volatile stock would impact the benchmark gauge.