Elon Musk’s electric car business is ready to benefit more Bitcoin investment according to January made in January as out of all its car sales in the whole of 2020 a note from the US research firm Wedbush Securities.
Tesla announced earlier this month that it had bought $ 1.5 billion worth Bitcoin in January. After the announcement of Tesla, Bitcoin’s price shot up like one of the rockets from Musk’s other venture, SpaceX. Moments after the news broke, Bitcoin’s price rose 8.5%.
And Bitcoin continued to rise: 12 days later, Bitcoin broke $ 57,000, securing a market capitalization just north of $ 1 trillion.
Wedbush analysts Dan Ives and Strecker Backe estimate that Tesla has already seen $ 1 billion in profits from its Bitcoin investment; compares this with the $ 721 million profit that Tesla reported for the 2020 financial year (assuming that Tesla has not yet sold any of the Bitcoin it bought in January.)
Musk helped boost the price of Bitcoin by tweeting its 47.5 million fans about it. When he changed his Twitter bio to “#Bitcoin #”, the price of Bitcoin rose by 13% within an hour. Musk also defended the currency against critics. When Gold bug and Bitcoin critic Peter Schiff, who runs the Euro Pacific Bank, tweeted that gold is better than crypto, Musk disagreed, tweet, “An email saying you have gold is not the same as having gold. You might as well have crypto.”
Wedbush calls the Bitcoin investment a “bye for Tesla”, but also believes it could have a ripple “for public companies over the next year and a half.
Nevertheless, the firm predicts that less than 5% of public enterprises will copy Tesla’s Bitcoin investment “until more government targets around the crypto market. ”
Wedbush remains optimistic that crypto will have a seismic impact on blockchain, payments, banks and semis in the coming years. ”
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