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In reply to the discussion: Elon Musk says his takeover of Twitter is 'on hold.' [View all]BumRushDaShow
(128,905 posts)17. "a way to get the stocks to fall to where his Tesla holdings will be enough to purchase it."
But the bitcoin market says, not so fast!
Elon Musk's Tesla Loses Money in Bitcoin Rout
The manufacturer of high-end electric vehicles had invested in bitcoin in February 2021.
Luc Olinga
May 10, 2022 3:05 PM EDT
The few established companies that have added bitcoin to their balance sheets are now beginning to see this investment go awry. Tesla invested $1.5 billion in virtual currency on Feb. 8, 2021, and said it was beginning to accept it as payment for buying Tesla cars.
The move came days after Chief Executive Elon Musk temporarily changed his Twitter mini-description to simply #bitcoin. The announcement was a mark of confidence in cryptocurrency. Bitcoin prices then jumped past $42,000.
Tesla claimed that this investment in bitcoin was aimed at diversifying its sources of liquidity and gaining flexibility in order to be able to largely remunerate its shareholders. But a few months later, in May 2021, Tesla indicated that it no longer accepted bitcoin as a means of payment. It cited as a reason that it wanted to preserve the environment since minting of bitcoins consumes enormous amounts of electricity.
(snip)
Tesla's Investment Is in the Red
For several months, Tesla's bitcoin gamble paid off, especially when the price hit an all-time high of $69,044.77 on Nov. 10. But since then prices have plummeted and are currently hovering around $31,000. The bitcoin-price slump puts Tesla's initial investment in the red. Indeed, the Austin company seems to have lost money. According to Bitcoin Treasuries, Tesla's 43,200 bitcoins purchased for $1.5 billion are currently valued at $1.35 billion, down $150 million, or about 15%.
(snip)
https://www.thestreet.com/investing/cryptocurrency/tesla-loses-money-on-bitcoin-bet
The manufacturer of high-end electric vehicles had invested in bitcoin in February 2021.
Luc Olinga
May 10, 2022 3:05 PM EDT
The few established companies that have added bitcoin to their balance sheets are now beginning to see this investment go awry. Tesla invested $1.5 billion in virtual currency on Feb. 8, 2021, and said it was beginning to accept it as payment for buying Tesla cars.
The move came days after Chief Executive Elon Musk temporarily changed his Twitter mini-description to simply #bitcoin. The announcement was a mark of confidence in cryptocurrency. Bitcoin prices then jumped past $42,000.
Tesla claimed that this investment in bitcoin was aimed at diversifying its sources of liquidity and gaining flexibility in order to be able to largely remunerate its shareholders. But a few months later, in May 2021, Tesla indicated that it no longer accepted bitcoin as a means of payment. It cited as a reason that it wanted to preserve the environment since minting of bitcoins consumes enormous amounts of electricity.
(snip)
Tesla's Investment Is in the Red
For several months, Tesla's bitcoin gamble paid off, especially when the price hit an all-time high of $69,044.77 on Nov. 10. But since then prices have plummeted and are currently hovering around $31,000. The bitcoin-price slump puts Tesla's initial investment in the red. Indeed, the Austin company seems to have lost money. According to Bitcoin Treasuries, Tesla's 43,200 bitcoins purchased for $1.5 billion are currently valued at $1.35 billion, down $150 million, or about 15%.
(snip)
https://www.thestreet.com/investing/cryptocurrency/tesla-loses-money-on-bitcoin-bet
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Of course he will, and he is trying to avoid the one billion dollar breakup fee he would owe.
JohnSJ
May 2022
#2
Yes. Some are speculating that he is trying to drive the price down, and renegotiate a lower price
JohnSJ
May 2022
#51
I think not just as an out of the Twitter deal - I think to purposely ruin Twitter
Pachamama
May 2022
#52
"Musk knows as well as anyone Twitter is also a great tool for market manipulation and securities
sop
May 2022
#30
Oh seriously, fuck this guy and everybody who cares what he says. At some point his $ doesn't matter
FreepFryer
May 2022
#6
"a way to get the stocks to fall to where his Tesla holdings will be enough to purchase it."
BumRushDaShow
May 2022
#17
Just yesterday, that news that the Milky Way's black hole is precisely the size he predicted!
JudyM
May 2022
#46
Playing the media world like a drum...he sure know how, no one can argue that.
Alexander Of Assyria
May 2022
#24
PPS down 4.50 so he can buy millions of shares and POOF tomorrow the deal in back on
Bengus81
May 2022
#32