Musk stated that “Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet,” adding:
“I have not sold any of my Bitcoin.”
As reported by Cointelegraph, Tesla sold a portion of its Bitcoin holdings in the first quarter of 2021, generating net proceeds of $272 million.Source:
‘I have not sold any of my Bitcoin’: Elon MuskTesla sold 10% of Bitcoin which they bought!!!
However, this is not the most important thing, even the fact that Elon Musk inadvertently admits he owns BTC is not something we notice. I want to talk about one more important thing that can make the buying pressure of BTC & the top altcoin increase terribly: accounting tricks with crypto.
+ If value of crypto decreases company that hoards crypto can use the lose to declare, deduct from the profits earned, leading to tax reduction;
+ If value of crypto increases, company does not have to pay additional taxes because it has not yet liquidated their crypto assets;
+ If company need, it could sell crypto to beautify the profit figures, Tesla did it by selling $110M in BTC and got a very nice accounting statement, making investors happy.
As such, we can see that other companies are just storing BTC, while Tesla uses BTC as an art of economics.
I believe that other companies have realized the potential of crypto in their own economies, and we will have more large businesses entering the crypto market to enjoy benefits of the art of accounting, which Tesla demonstrated.
Do you think this will be the main driver of BTC price reaching $90K-100K this year and total crypto cap reaches $6T?