CryptoWhistle - Crypto Currency Tracker logo CryptoWhistle - Crypto Currency Tracker logo
Seeking Alpha 2021-02-19 13:57:57

Tesla likes Bitcoin vs. cash, but what about vs. CapEx? – At the Open

Elon Musk “essentially” went long Bitcoin and short Tesla when he invested $1.5B of his company’s cash in the cryptocurrency, analysts at DataTrek Research postulated this week.The Tesla founder came out on Twitter last night playing down the idea he’s a crypto evangelist, but asserting that Bitcoin is “simply a less dumb form of liquidity than cash.”Bitcoin (BTC-USD) is hitting new all-time highs this morning and currently up to nearly $52.7K. Tesla (TSLA) is up 1% in premarket trading.But while Musk favors Bitcoin over the greenback, is the $1.5B investment also an indication it’s favorable to investing more to make electric vehicles?DataTrek looked at the move from three perspectives using standard corporate finance theory (referring to Bitcoin throughout at “B” to avoid a big span filter trap, they say).First is reinvestment rates and whether Bitcoin has a higher rate of return than selling more cars.“After all, $1.5 bn is enough to build

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.