Tesla Bought 1.5 B in Bitcoins

[laredo7mm]

This might be one of the reason why suddenly Bitcoin price kicked its price in the market.
I couldn't imagine now that we are road to 50k$ each Bitcoin, and that is closed to happen by now.
Remember, that recently when Dogecoin pumped its price, Bitcoin was also all of a sudden pumped its
price too, So I'm so excited what will happen next now into bitcoin.

Dogecoin was totally unexpected and price pick because of hype. The price of doge should not be that high and this happens only because of Elon's tweet. This is also alarming I think because it shows how the whole market can be influenced so easily. One single man can spike the price of any crypto assets. Mass adoption of crypto has started and our future economy will be controlled by a few individuals which I fear most about crypto.

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[Btcvilla]

This company make bitcoin hit higher price and we can't prediction chart now just waiting Tesla and Elon musk what they do next day with bitcoin and altcoin, waiting will he make people become rich with cryptocurrency or many people loss chance to get bitcoin after dump, before Tesla maybe many companies have try to adopt bitcoin.

[famososMuertos]

-/Signs/-information/-advice/-notice/-warning/-announcement/-message/-notification/prompt-/etc.!!/-

"El" Tesla "on"

To: ordinary people (...I ),  a piece of news like that with so many "-//-", beyond the complexity that it may have in the financial market and the socio-economic collateral effect, you have You have to understand it that a movement of that magnitude does not take you away from bitcoin, it brings you closer, it is there a few clicks and you become a holder of an asset that was acquired by a corporation that has the richest man on the planet as its leader...


____
^{The=El
on=on
so, Elon.}

[paxmao]

... then they should return it to shareholders through dividends or buybacks. But in the second half of of 2020, Tesla issued at least $10 billion in new TSLA shares. This basically means that they took $10 billion from existing investors by reducing the value of their shares, and now they're using a big chunk of this money to speculate on a very volatile asset. ..

Tesla, as many companies of the dot com bubble is a lot about hype and very little about (non-existing) profit.

You are certainly right from a financial point of view, the management of a company that has to rise cash and dilute shareholders should not be making investments that are unrelated to their vision and highly speculative in nature.

Now, put on your Marketing hat. Bitcoin after the halving is the coolest bet for all the millennials and having a Tesla is all about being super-cool and show it to the world. So, Tesla has made a highly speculative investment and without spending a dime (the bitcoin is still there) has gotten once again worldwide attention. A master-move.

Disclaimer: This is not an endorsement. I probably have indirect holdings on Tesla stock, I haven´t bothered to find out really.

[AndySt]

... then they should return it to shareholders through dividends or buybacks. But in the second half of of 2020, Tesla issued at least $10 billion in new TSLA shares. This basically means that they took $10 billion from existing investors by reducing the value of their shares, and now they're using a big chunk of this money to speculate on a very volatile asset. ..

Tesla, as many companies of the dot com bubble is a lot about hype and very little about (non-existing) profit.
You are certainly right from a financial point of view, the management of a company that has to rise cash and dilute shareholders should not be making investments that are unrelated to their vision and highly speculative in nature.
Now, put on your Marketing hat. Bitcoin after the halving is the coolest bet for all the millennials and having a Tesla is all about being super-cool and show it to the world. So, Tesla has made a highly speculative investment and without spending a dime (the bitcoin is still there) has gotten once again worldwide attention. A master-move.
Disclaimer: This is not an endorsement. I probably have indirect holdings on Tesla stock, I haven´t bothered to find out really.

No matter how we feel about it, but this is the reality of the modern crazy market, as well as the highly inflated capitalization of some companies that have little correlation with their profits. Elon Musk himself was initially skeptical and distrustful of the current capitalization of his company, but he had already changed his mind by now and began to fiercely defend the current state of affairs in his speeches

[fillippone]

A funny Alphaville Article on TSLA Buying bitcoin, underlying some tidbits got lost in my opinion, due to general excitement:

Just a couple of Excerpts
Tesla and bitcoin: the accounting

   We will account for digital assets as indefinite-lived intangible assets in accordance with ASC 350, Intangibles — Goodwill and Other. The digital assets are initially recorded at cost and are subsequently remeasured on the consolidated balance sheet at cost, net of any impairment losses incurred since acquisition. 
As of 31 December 2020, Tesla had $520m of goodwill and intangible assets on its balance sheet, so expect to see that figure at least quadruple by the next set of quarterly results. Assuming Tesla doesn’t make an acquisition in the next three months, of course.

One quick observation here — the cryptocurrency’s classification as an intangible asset only adds further weight to the already overwhelming argument that bitcoin is not a currency. In fact, Tesla includes US government bonds in its cash and cash equivalents, suggesting sovereign debt is far more of a convertible store of value than the king crypto. After all, no one has ever needed to run an impairment test on the dollar or a Treasury note.

Interesting enough.
 But the most important passage is this one, in my opinion:

But the crucial question here is, how will it impact Tesla’s bottom line? Well, the company answered that also. The paragraph quoted above continues:

We will perform an analysis each quarter to identify impairment. If the carrying value of the digital asset exceeds the fair value based on the lowest price quoted in the active exchanges during the period, we will recognise an impairment loss equal to the difference in the consolidated statement of operations.

The cost basis of the digital assets will not be adjusted upward for any subsequent increases in their quoted prices on the active exchanges. Gains (if any) will not be recorded until realised upon sale.

So, in short, Tesla will not recognise a gain on the value of its bitcoin unless some are sold. However, it will recognise a loss if the crypto falls below the price at which the electric vehicle maker purchased its allocation over an accounting period, even if the coins are not sold.

This is a very prudential approach, so the Bitcoin investment is unlikely to add too much volatility to the already quite hectic TSLA stock.

[mannybitcoins]

A funny Alphaville Article on TSLA Buying bitcoin, underlying some tidbits got lost in my opinion, due to general excitement:

Just a couple of Excerpts
Tesla and bitcoin: the accounting

   We will account for digital assets as indefinite-lived intangible assets in accordance with ASC 350, Intangibles — Goodwill and Other. The digital assets are initially recorded at cost and are subsequently remeasured on the consolidated balance sheet at cost, net of any impairment losses incurred since acquisition. 
As of 31 December 2020, Tesla had $520m of goodwill and intangible assets on its balance sheet, so expect to see that figure at least quadruple by the next set of quarterly results. Assuming Tesla doesn’t make an acquisition in the next three months, of course.

One quick observation here — the cryptocurrency’s classification as an intangible asset only adds further weight to the already overwhelming argument that bitcoin is not a currency. In fact, Tesla includes US government bonds in its cash and cash equivalents, suggesting sovereign debt is far more of a convertible store of value than the king crypto. After all, no one has ever needed to run an impairment test on the dollar or a Treasury note.

Interesting enough.
 But the most important passage is this one, in my opinion:

But the crucial question here is, how will it impact Tesla’s bottom line? Well, the company answered that also. The paragraph quoted above continues:

We will perform an analysis each quarter to identify impairment. If the carrying value of the digital asset exceeds the fair value based on the lowest price quoted in the active exchanges during the period, we will recognise an impairment loss equal to the difference in the consolidated statement of operations.

The cost basis of the digital assets will not be adjusted upward for any subsequent increases in their quoted prices on the active exchanges. Gains (if any) will not be recorded until realised upon sale.

So, in short, Tesla will not recognise a gain on the value of its bitcoin unless some are sold. However, it will recognise a loss if the crypto falls below the price at which the electric vehicle maker purchased its allocation over an accounting period, even if the coins are not sold.

This is a very prudential approach, so the Bitcoin investment is unlikely to add too much volatility to the already quite hectic TSLA stock.

To my mind, it is a great marketing move by Elon. Also, I think he has a hide partnership with Binance, because when Elon tweets to buy Doge the question is where to buy? Easy, the most popular Exchange - Binance in this way there are too many newcomers on the exchange and Coinmarketcap which is owned by Binance publish "the Tesla token" on the 1st page. 

[fillippone]

To my mind, it is a great marketing move by Elon.

Well, not to sure about this.
Someone said on Twitter that apparently  Tesla has already made more money from hodling Bitcoins for less than one month than in selling cars for the past 14 years.

[iamsheikhadil]

I always thought and predicted that Elon Musk will one day look at crypto in a positive way and appreciate its underlying technologically revolution because he's a cool guy with a vision and his curiosity to know and learn more and make products for the world to help humanity, and he is doing it for everyone, unlike most billionaires who only care for themselves!

[Lucas*]

Elon Mask is really genious ! After investing in bitcoin the price rise into the sky And He earn 1/3 of the amount invested in Just 12h ! And now i'm waiting for his next stem, what He well do, that men is really special, i'm waiting for his strategy

[tygeade]

-snip-

The fact that they are not considering bitcoin as currency is fine, I can't care less because what Tesla thinks about bitcoin is not that important to me, they must like it enough to spend enough money on it and that is the only thing I need to know, if they like it enough to buy it, that means it is good and currency or not it is a good thing. We all know turning bitcoin into cash is a lot simpler then turning bonds into cash, it is not even possible to argue about that because one of them is literally just one click of your mouse and it is done, how could it be any easier than that, how could anything could be easier than that.

However the part where they do recognize a loss as a loss when it drops but an increase as nothing is a bit weird, if it goes down a bit, they put in a loss, then it goes way above, and then it goes down again, will they have 2 losses but zero profits with that calculation? That doesn't sounds reasonable honestly.

[Btcvilla]

Now bitcoin down any news from Tesla wanna buy more bitcoin again? last two days I see nothing update by Elon Musk and Tesla company after last week announcement they have bought bitcoin, How long waiting with Elon Musk tweet to make panic for many people buy bitcoin or next tweet will be good news for Doge coin.

[Silberman]

... then they should return it to shareholders through dividends or buybacks. But in the second half of of 2020, Tesla issued at least $10 billion in new TSLA shares. This basically means that they took $10 billion from existing investors by reducing the value of their shares, and now they're using a big chunk of this money to speculate on a very volatile asset. ..

Tesla, as many companies of the dot com bubble is a lot about hype and very little about (non-existing) profit.

You are certainly right from a financial point of view, the management of a company that has to rise cash and dilute shareholders should not be making investments that are unrelated to their vision and highly speculative in nature.

Now, put on your Marketing hat. Bitcoin after the halving is the coolest bet for all the millennials and having a Tesla is all about being super-cool and show it to the world. So, Tesla has made a highly speculative investment and without spending a dime (the bitcoin is still there) has gotten once again worldwide attention. A master-move.

Disclaimer: This is not an endorsement. I probably have indirect holdings on Tesla stock, I haven´t bothered to find out really.

But is not that the case already with almost any stock that you can find in the market? The price of a stock has almost nothing to do with the company behind it, now it's pure hype and I will admit that Elon Musk is a master at creating hype about whatever he does, in a way he reminds me of Steve Jobs, talented individuals that offered products at a very expensive price that you could get for half a price with other companies but that with their personality they were able to create a cult-like following.

[iv4n]

Tesla said that he would invest $ 1.50 billlion, of course, it would be an obstacle for bitcoin to progress and develop in the future. welcome Tesla and thank you

Well, he affects the masses! I think it's the bottom of all this! He has many followers, and when he makes a move it's big marketing! He is on the crypto side, and that is good for the entire crypto market, he will bring more people (except his own money) and that's the most important part of all this, crypto is spreading on all sides!
I believe he is just the first, we will see many other billionaires entering crypto in the near future! What Elon did will become a trend, and that will be a big wave!

[longyenthanh]

Tesla said that he would invest $ 1.50 billlion, of course, it would be an obstacle for bitcoin to progress and develop in the future. welcome Tesla and thank you

Well, he affects the masses! I think it's the bottom of all this! He has many followers, and when he makes a move it's big marketing! He is on the crypto side, and that is good for the entire crypto market, he will bring more people (except his own money) and that's the most important part of all this, crypto is spreading on all sides!
I believe he is just the first, we will see many other billionaires entering crypto in the near future! What Elon did will become a trend, and that will be a big wave!

I think what Elon Musk did will start a completely new situation on the cryptocurrency market. See that until recently there was a giant PayPal, now Tesla with Elon. I think that this year we will have a period of watching only green charts on the entire cryptocurrency market.

[Vishnu.Reang]

I think what Elon Musk did will start a completely new situation on the cryptocurrency market. See that until recently there was a giant PayPal, now Tesla with Elon. I think that this year we will have a period of watching only green charts on the entire cryptocurrency market.

With unorthodox assets such as Bitcoin, someone needs to take the initiative. And this is what Elon Musk and PayPal have done. They took the initiative and now there are large number of corporations following the trend (including MasterCard, Visa, Amazon, Apple, Twitter.etc). Very soon, this will turn in to FOMO. Those corporations which are still hostile to the idea of cryptocurrency will be forced to invest, if most of the others do that. No one wants to miss out.

And I have to thank PayPal first, because they were the ones who started it. The spike from PayPal adoption came at a time when Bitcoin needed it the most. Then the second spike was resulted from Elon Musk and Tesla. Now I don't know who will cause the third wave, but in all probability it is going to be one among these corporations - Amazon, Google, Apple, Microsoft & FaceBook.

[longyenthanh]

I think what Elon Musk did will start a completely new situation on the cryptocurrency market. See that until recently there was a giant PayPal, now Tesla with Elon. I think that this year we will have a period of watching only green charts on the entire cryptocurrency market.

With unorthodox assets such as Bitcoin, someone needs to take the initiative. And this is what Elon Musk and PayPal have done. They took the initiative and now there are large number of corporations following the trend (including MasterCard, Visa, Amazon, Apple, Twitter.etc). Very soon, this will turn in to FOMO. Those corporations which are still hostile to the idea of cryptocurrency will be forced to invest, if most of the others do that. No one wants to miss out.

And I have to thank PayPal first, because they were the ones who started it. The spike from PayPal adoption came at a time when Bitcoin needed it the most. Then the second spike was resulted from Elon Musk and Tesla. Now I don't know who will cause the third wave, but in all probability it is going to be one among these corporations - Amazon, Google, Apple, Microsoft & FaceBook.

I am also waiting for the announcement of the next giant that will start accepting and investing in cryptocurrencies. I'm sure it won't be Facebook because of the Libra project. Gates also don't like crypto, so I doubt it will be Microsoft. Apple is the most likely, followed by Amazon.
However, the most important thing is that small companies should not be afraid of cryptocurrencies and start accepting them. I think it is already happening.

[Silberman]

I am also waiting for the announcement of the next giant that will start accepting and investing in cryptocurrencies. I'm sure it won't be Facebook because of the Libra project. Gates also don't like crypto, so I doubt it will be Microsoft. Apple is the most likely, followed by Amazon.
However, the most important thing is that small companies should not be afraid of cryptocurrencies and start accepting them. I think it is already happening.

More than anything this is what we really need, big companies accepting bitcoin is without a doubt a good news and it is something that we had been expecting for a long time but if those companies are the only ones that accept bitcoin then sooner or later they will end up with a great deal of the supply, we need that small businesses begin to accept bitcoin as well even if right now they are not going to get as many clients because bitcoin is not as popular, eventually they will make a name for themselves if they accept cryptocurrencies, and they will gain a larger share of local users when bitcoin finally becomes popular.

[Sithara007]

I am also waiting for the announcement of the next giant that will start accepting and investing in cryptocurrencies. I'm sure it won't be Facebook because of the Libra project. Gates also don't like crypto, so I doubt it will be Microsoft. Apple is the most likely, followed by Amazon.
However, the most important thing is that small companies should not be afraid of cryptocurrencies and start accepting them. I think it is already happening.

The Libra/Diem project of FaceBook was dead even before it could be launched. Rather than a cryptocurrency, it was more similar to the CBDC coins so I am not much worried about its demise. Maybe now Zuckerberg will realize his mistake and start trusting in Bitcoin, rather than creating his own shitcoin. And I agree with you regarding Bill Gates. His stance towards cryptocurrency is not very encouraging. But the important thing to note here is that Gates is no longer the CEO of Microsoft. As of now, Satya Nadella is holding that position. But I agree with your last post. Apple and Amazon are much more likely than either Facebook or Microsoft to adopt Bitcoin in the short term.

[Ludmilla_rose1995]

This is an amazing step forward for crypto in the future. Elon musk has brought many people into crypto and bitcoin. The adoption of crypto and bitcoin is increasing. Most likely, bitcoin will be used by everyone in a few years.