Notably, Tesla announced that it purchased Bitcoins worth $1.5 billion and plans to add the asset as a form of payment. Though the firm is still earning from its Bitcoin position, a respected analyst thinks it should sell. With the proceeds made from the Bitcoin position, Tesla can begin its stock buyback and prevent further sell-off.
Gary Black tweeted that institutional investors would prefer if Tesla just bought back its stock over holding BTC.
A Twitter user replied saying that he expects Tesla to continue to buy more BTC. Such an investment would further boost growth and productivity despite the market competition. He also added that in hindsight, perhaps after a decade, Tesla will enjoy its BTC holding greatly.
Tesla stock was up by 342% in the past year, thanks to the increased demand globally. However, over the last few days, Tesla’s stock has fallen. It was trading about 611.74, down by 1.59% throughout the premarket. Consequently, a review led by MarketWatch media indicates that Tesla saw 34 different ranks in stock average for Hold rating.
Furthermore, Tesla had a broadcast market valuation of approximately $626.98 billion with 959.85 million significant shares. Thus, Tesla’s stock has remained on the uptrend for the past few months.
According to Elon Musk’s past tweets, it is unlikely that the firm will sell the Bitcoin position soon. Likewise, according to the company’s SEC filing, the company could improve its Bitcoin position. This can happen if the price falls below the purchase level or if the crypto ecosystem is compromised by hackers.
This article first published on coinquora.com
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Source: Cryptocurrency - investing.com
