Tesla, the electric car maker led by crypto fan billionaire Elon Musk, added $ 1.5 billion worth of Bitcoins to his balance sheet in early February.
Tesla’s Bitcoin buying activity caused the price to skyrocket, with Bitcoin rising to almost $ 60,000 in mid-February. However, the price has dropped by almost 20% since then, with Tesla shares falling even further. – 30% since it announced that it bought Bitcoin.
Bitcoin billionaire Tim Draper has suggested that both Apple and Netflix could follow Tesla’s move to Bitcoin, warning fears of inflation that will push companies toward Bitcoin.
“Apple has a lot of cash. If they don’t buy something, their net worth will naturally drop lower in the next three to four years, because we’ve printed too much”, Draper told the council during the annual Montgomery Summit. 2021.
Apple has nearly $ 200 billion in cash, according to its latest earnings report – the largest amount of cash of any U.S. publicly traded company. The iPhone maker did not respond to a request for comment when asked whether to consider buying Bitcoin.
Draper, who bought nearly 30,000 BTC that the US Judicial Police seized from black market Silk Road for $ 18.7 million in 2014, also predicted streaming giant Netflix could buy top crypto.
“Maybe Netflix,” Draper said on the Unstoppable Podcast. “I think co-CEO Reed Hastings is a very innovative and creative person. If I were CFO of one of those large institutions I would say ‘we have to own x% Bitcoin because it is a hedge against another currency becoming the currency of the future and it is also a hedge. fight against inflation ”.
As such, it is understandable that Netflix currently has no plans to add Bitcoin to its finances.
The Bitcoin price is volatile, currently trading around $ 47,600, climbing nearly 400% since the last bull run that started in October. Many Bitcoin investors are confident the price will continue to rise, despite those other, including billionaire Bill Gates, was more wary.
Last month, Tesla’s stock price was believed to be directly related to Bitcoin’s price.
Daniel Ives, an analyst at Wedbush, told CNBC:
“In the eyes of Wall Street, Musk is now tied to the BTC story and although Tesla made a billion in the first month of owning digital gold, it comes with risks”.
Tesla is not the only Bitcoin buyer to have been affected in recent weeks, as shares of business intelligence firm MicroStrategy have fallen in half since it peaked with Bitcoin prices in early February.
Tesla followed in the footsteps of MicroStrategy for Bitcoin buying this year – with companies buying Bitcoin worth billions of dollars.
MicroStrategy has chief executive Michael Saylor known as the “Bitcoin prophet”, began buying last summer and has continued to increase its holdings since then, bringing the company’s BTC count to more than 90,000 according to one tweeted on March 5.