AGL 5.40 No Change ▼ 0.00 (0%)
ANL 8.79 No Change ▼ 0.00 (0%)
AVN 76.16 Decreased By ▼ -0.09 (-0.12%)
BOP 5.17 Decreased By ▼ -0.02 (-0.39%)
CNERGY 4.48 No Change ▼ 0.00 (0%)
EFERT 81.10 No Change ▼ 0.00 (0%)
EPCL 49.00 Decreased By ▼ -0.01 (-0.02%)
FCCL 12.70 No Change ▼ 0.00 (0%)
FFL 5.59 Decreased By ▼ -0.03 (-0.53%)
FLYNG 6.98 Increased By ▲ 0.05 (0.72%)
FNEL 4.63 Decreased By ▼ -0.02 (-0.43%)
GGGL 8.59 Decreased By ▼ -0.01 (-0.12%)
GGL 14.06 Decreased By ▼ -0.09 (-0.64%)
HUMNL 5.50 Increased By ▲ 0.01 (0.18%)
KEL 2.60 Increased By ▲ 0.01 (0.39%)
LOTCHEM 27.71 No Change ▼ 0.00 (0%)
MLCF 23.68 Increased By ▲ 0.08 (0.34%)
OGDC 71.45 Decreased By ▼ -0.12 (-0.17%)
PAEL 15.20 No Change ▼ 0.00 (0%)
PIBTL 4.91 No Change ▼ 0.00 (0%)
PRL 15.80 Decreased By ▼ -0.03 (-0.19%)
SILK 1.05 No Change ▼ 0.00 (0%)
TELE 8.99 No Change ▼ 0.00 (0%)
TPL 7.16 No Change ▼ 0.00 (0%)
TPLP 19.22 Increased By ▲ 0.04 (0.21%)
TREET 21.14 No Change ▼ 0.00 (0%)
TRG 136.75 Increased By ▲ 0.25 (0.18%)
UNITY 16.80 Increased By ▲ 0.04 (0.24%)
WAVES 9.10 Decreased By ▼ -0.05 (-0.55%)
WTL 1.37 Decreased By ▼ -0.01 (-0.72%)
BR100 4,178 Increased By 23.4 (0.56%)
BR30 15,488 Increased By 152.9 (1%)
KSE100 41,728 Increased By 187.7 (0.45%)
KSE30 15,413 Increased By 47.5 (0.31%)
Markets

Tesla electrifies bitcoin with $1.5 billion bet, car payments pledge

  • Analysts said the move by one of the world’s best-known companies was liable to prove a game changer for bitcoin.
  • Musk said a week ago that bitcoin was “on the verge” of being more widely accepted among investors and in December asked if it was possible to do large transactions in the currency.
Published February 8, 2021
Follow us

Tesla Inc said on Monday it had invested around $1.5 billion in bitcoin and expected to begin accepting payment for its cars and other products with it in the near future, prompting a more than 10% jump in the electronic currency.

Analysts said the move by one of the world’s best-known companies was liable to prove a game changer for bitcoin.

A well-known supporter of bitcoin, Chief Executive Officer Elon Musk has been weighing in regularly over the past week to a frenzy in retail investment, also driving up shares in meme-based digital currency dogecoin and shares of U.S. video game chain GameStop

Musk said a week ago that bitcoin was “on the verge” of being more widely accepted among investors and in December asked if it was possible to do large transactions in the currency.

“I think we will see an acceleration of companies looking to allocate to Bitcoin now that Tesla has made the first move,” said Eric Turner, vice president of market intelligence at cryptocurrency research and data firm Messari.

“One of the largest companies in the world now owns Bitcoin and by extension, every investor that owns Tesla (or even just an S&P 500 fund) has exposure to it as well.”

Bitcoin, which has set new record highs in recent months after a rollercoaster ride over the past decade, has also drawn support from major financial institutions this year. The world’s biggest money manager Blackrock recently changed a handful of investment mandates to allow some of its funds to invest in the currency.

Central banks remain sceptical of digital currencies, but analysts say the more real world uses appear for bitcoin, the more attractive it will prove as a long term store of value.

Tesla said in a filing the decision was part of its broad investment policy as a company and was aimed at diversifying and maximizing its returns on cash.

It said it had invested an aggregate $1.5 billion in bitcoin under the changed policy and could "acquire and hold digital assets from time to time or long-term". (bit.ly/3q53p1m)

“He’s now putting his money (shareholders’) where his mouth is,” Markets.com analyst Neil Wilson said.

“But given his recent comments – and adding #Bitcoin to his Twitter bio on January 29th – it also raises a real question about possible market manipulation.”

Bitcoin surged more than 10% on Monday to a record high of $43,625 after Tesla’s disclosure.

Musk has also endorsed other crypto currencies in the recent past. He gave dogecoin, the coin based on a popular internet meme, a shoutout on Twitter last week sending its price to record highs over the weekend.

Late on Sunday, in a fresh endorsement for the cypto currency, Musk tweeted “Who let the Doge Out” -- mimicking lines from the famous song by Baha Men from the year 2000.

The coin has also received attention from California rapper Snoop Dogg by putting up an image of a dog tagged “Snoop Doge” on his Twitter timeline.

Dogecoin was created largely as a satirical critique of the 2013 crypto frenzy and is not taken as seriously as bitcoin or ethereum. It almost doubled since Friday hitting a record $0.0871, according to data on blockchain and cryptocurrency website Coindesk.

Comments

Comments are closed.

Tesla electrifies bitcoin with $1.5 billion bet, car payments pledge

Oil from Russia: Musadik says there will be no US sanctions

Schools in Lahore to remain closed three days a week due to smog

Intra-day update: rupee gains against US dollar

Poor countries’ debt servicing costliest: World Bank

Energy-efficient projects: World Bank ready to extend $300m financing

ECC asks Power Division to resolve KE issues

Oil prices slump to pre-Ukraine crisis levels

Rs38bn additional taxation measures: Tax Laws (Amend) Ord may be extended for another 120 days

‘Funding’ major challenge to achieve SDGs, says Aisha Pasha

Vegetables: 400 containers stuck at seaport: PFVA