Elon Musk now the richest person in the world, keep pushing him Michael Saylor!

in LeoFinance2 months ago

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What if Elon adds Bitcoin to TSLA's balance sheet?

Elon Musk became the richest man in the world today with his net worth topping $185 billion today.

This is mostly thanks to the rocketing share price of TSLA, of which most of his net worth is tied to.

On that note, TSLA is one of the few large assets or stocks that has actually outperformed bitcoin over the last 12 months.

It's up close to 900% at this point, while bitcoin is ONLY up 500% or so:

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https://hive.blog/hive-167922/@jrcornel/if-bitcoin-s-in-a-bubble-then-tsla-s-in-a-yuge-bubble

The really crazy thing about this is that Elon started the year worth about $22 billion and barely cracked the list of 50 richest people in the world.

Fast forward 12 months and he's now worth $185 billion and just climbed past the CEO of Amazon (Jeff Bezos) to take the top spot.

For those doing the math, he Elon's net worth roughly 9x in the last 12 months. In this instance holding a ton of his company's stock paid of big time.

Could he eventually buy bitcoin?

The really great thing about your stock price flying is that you can issue new shares and really capitalize on the run up in prices.

In fact TSLA is know for doing exactly that.

They have issued shares on a semi regular basis ever since they went public.

The really crazy thing for them is that the last time they announced issuing more shares the stock actually close higher on the day.

Very rarely do you see a company announce that they are going to be diluting share holders an the stock climbs on that news.

Oh the power of Elon and Tesla.

Anyways, not long ago Michael Saylor took to twitter to pitch the idea of TSLA and Elon converting some of their cash to bitcoin in order to preserve the purchasing power.

More on that can be seen here btw:

https://hive.blog/hive-167922/@jrcornel/michael-saylor-offers-to-help-get-elon-musk-and-tesla-into-the-bitcoin-game

While Elon's response we luke warm, he didn't shoot down the idea either.

In fact he later made some comment that bitcoin was less rigged than fiat money, which is a complement in a way.

Considering how much cash they are sitting on and going to continue to be sitting on given how easy it's going to be to raise equity it will make a lot of sense for him to eventually add some bitcoin to his balance sheet.

Time will tell if he does, but it certainly is in the realm of possibilities.

Here's to hoping he does!

Stay informed my friends.

-Doc

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Musk's sole goal is human civilisation on Mars.
That's what he will use all his money to achieve.

If investing some of Tesla reserves in BTC helps with that goal he will do it.

Exactly what I was about to say :)

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I doubt that he will add any type of cryptocurrency.

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Dogecoin surely!

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What Musk has been doing over the past 20 years is incredible. Perhaps he had little time to better understand what blockchain was, but I think he has now understood it.

We hear bitcoin over bought but you have a chart that says even TSLA is up more than bitcoin over the year. Think there is potential for bitcoin to continue to rise, and since Elon is the richest man on the planet it won't hurt that he own some btc. I have yet to find but know that people can buy a Tesla with btc. Wonder how much btc Tesla already holds?

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It's actually dumb for him to not pull a publicity stunt over this. Hype up Telsa putting Bitcoin on their reserve sheets... buy 100 BTC. The stock will moon. Bitcoin will moon. Easy.

Essentially relative zero risk.

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Musk interested in Mars, not the moon. 😃

And Dogecoin!

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Yep, exactly.

Oh, man. If he does decide to buy Bitcoin, we are in for a wild ride.

On a side note, really happy for him to be in first place wealth wise.

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Stock price is not same as liquidity... To buy Bitcoin, Elon would need to first sell some TSLA stocks to get liquidity. As such, if TSLA is highly overvalued, it would make sense to sell small amount as that could still equal to enough cash and would stabilize the stock prize by letting some air out of the "bubble"

He could do a private offering similar to what MSTR just did...

You mean issue new stocks with Bitcoin as collateral... That would be possible, but not wise as it would dilute value of the existing stocks.

Only way for it to work is to first buy back excess of the existing stocks and void them. After that Tesla can issue any amount of new stocks. This way it is clear the company has adequate liquidity and that the stock price is not a bubble.

No I mean issue shares in exchange for cash, which is then used to buy bitcoin.

I would never use cash to buy large amounts of cryptocurrency... In a lot of countries you pay fees proportional to the amount being transferred...
It's not like in my country, where wire transfers are free if the recipient is a registered company.

A lot of the large purchases are done OTC, that plus Michael Saylor even offered to give Elon the blue print of how to best get hundreds of millions or billions into bitcoin.

Pack zillion of cash in suitcase and keep laptop or mobile phone to make the Bitcoin transfer ;) That's how they do it on TV ;)