Tesla Ing (NASDAQ: TSLA) investor Ron Baron says the company’s decision to invest $ 1.5 billion in Bitcoin (BTC) and accept the digital currency as a payment option is “not surprising.”
Musk likes Bitcoin: Tesla CEO Elon Musk has been commenting favorably on bitcoin for some time, Baron told CNBC in a statement. Tesla probably does not speculate on the price of bitcoin, but rather uses it as a payment system.
Other heavyweight investors such as Stanley Druckenmiller and Paul Tudor Jones, CIO of Tudor Investment Corp., are equally strong about bitcoin, while companies such as Paypal Holdings Inc. (NASDAQ: PYPL) expands its digital currency offering.
“I’m sure a lot of thought has been given to bitcoin purchases by Tesla and I’m looking forward to learning the rationale,” according to Baron, the CEO, chairman and portfolio manager of Baron Funds.
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Lope Ventures’ Gene Munster also likes the move.
“Tesla has money to lose with $ 19 billion in assets,” Munster told Benzinga. “Yes, Bitcoin can move the needle for Tesla. If it rises 10x, it’s $ 15 billion for Tesla. That’s real money.”
Bitcoin investment: Tesla’s decision to allocate about 7.5% of its total cash in bitcoin and can be seen as a sign to customers that it ‘understands where the world is going’, said Galaxy Noval CEO Michael Novogratz. CNBC said. People want to do business and invest in companies that look forward to the next 100 years – not the last 100 years.
On the other hand, Musk should not tweet about Dogecoin because the appreciation of the digital currency has reached a point where some people will lose a lot of money, he said. The digital currency has no real purpose, unlike bitcoin or Ethereum and others.
“It was a little funny,” Novogratz said.
Difficult to prove any manipulation: Musk has been on bitcoin for some time and this begs the question of whether his comments can be seen in public as market manipulation. Carson Block, founder of Muddy Waters Research, said he did not think that was the case.
Musk is by no means the only significant person in the investment community who publicly comments on what he is positive about. Musk’s comments do not differ from Chamath Palihapitiya who confirms that he is tall GameStop Corp. (NYSE: GME) call options.
Meanwhile, the U.S. Securities and Exchange Commission has “no record of success” against Musk, Block told CNBC. As such, any investigation is likely to lead to a ‘dead end’.
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