After Tesla buys $ 1.5 billion in Bitcoin, the internet is awash with rumors about which high-profile corporate asset will be next.
Bitcoin purchases may increase after Tesla
Even at this stage of the game, corporate BTC purchases can be confronted with controversy from traditional hunters. They are expressing their concern about decreasing dollar liquidity and being exposed to increased risk to volatility.
The “Elon candle” generated a massive boost for Bitcoin on Monday.
FT named Tesla’s Bitcoin investment as a move several companies are likely to follow. In the article, treasury expert Jerry Klein, Managing Director at investment firm Treasury Partners, said it makes no sense to trade cash with Bitcoin.
“High volatility is a big problem.”
Klein notes that security is the number one priority for treasury funds. He says this approach does not suit BTC due to its characteristic high volatility.
“Companies invest their cash in very high quality, short-term fixed income securities and are willing to accept a relatively low rate of return. I don’t think there is a situation that can be done to invest corporate cash in a risky asset like Bitcoin, where they could experience significant drops. ”
MicroStrategy CEO Michael Saylor also made this point in a CNBC interview. He said that if he chooses between holding cash and coping with declining purchasing power over time, or holding the best performing asset of the last decade, he would choose Bitcoin each time.
Despite the controversy surrounding the issue, more companies will inevitably follow suit. The question is, which company is next?
Next is Oracle?
Some had previously mentioned Apple that fits the bill of a high-profile company in the same league as Tesla.
Bitcoin bull Max Keizer stepped in by nominating US software giant Oracle. Aside from CEO Larry Ellison’s mention of his name, his tweet didn’t go into much more detail than that.
@BTC_Archive pointed out that Ellison is a member of the Tesla board. His tweet even gave a figure of $ 38 billion considered for investment. If true, this will be equal to a massive purchase of 850 thousand BTC.
Larry Ellison is a Tesla board member.
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) February 9, 2021
However, considering Jack Dorsey’s fondness for Bitcoin, Twitter also joins the rumors. When asked about Tesla’s thoughts on his game, Twitter CFO Ned Segal said they had “thought about it long ago”. However, he said the company has not made any changes yet.