Will company assets be converted ?: Tesla boss Musk toying with Bitcoin

Monday, December 21, 2020

Will company assets be converted?
Tesla boss Musk toying with Bitcoin

The fiscal year couldn't go any better for Tesla. The efforts of the profitable electric car manufacturer are rewarded with inclusion in the S&P 500. Meanwhile, CEO Musk is thinking publicly about whether he should convert company assets into Bitcoin.

The electric car pioneer and company boss Elon Musk is fueling the current hype about the crypto currency Bitcoin. Musk asked about the possibility of converting the electric carmaker's company assets from dollars to Bitcoin, according to an exchange between Musk and Michael Saylor, CEO of software manufacturer Microstrategy, on Twitter.

"If you want to do your shareholders a $ 100 billion favor, convert Tesla's balance sheet from dollars to bitcoin," Saylor suggested to the entrepreneur in a tweet. Musk would send a strong signal to companies in the S&P 500 that would follow suit.

When Musk asked whether transactions on this scale were even possible, Saylor replied that he had bought over $ 1.3 billion in Bitcoin in the past few months and offered Musk to reveal his investment strategy for the digital currency. Neither Tesla nor Musk could be reached for comment.

Tesla shares experience extraordinary boom

Starting today, Tesla is part of the prestigious S&P 500 stock index, which includes the largest listed US companies and also plays an important role for many index funds (ETFs). The index operator S&P Dow Jones Indices announced in November that Tesla will be included from December 21st. One of the conditions for inclusion is profitability over several quarters.

Tesla shares experienced an extraordinary boom over the course of the year. In the meantime, the Musk company is worth more than its competitors General Motors, Ford, Toyota, Honda, Fiat Chrysler and Volkswagen combined, despite the comparatively low production figures to date. The upcoming inclusion in the S&P 500 had given the papers a further boost.