Will Elon Musk Use Bitcoin for Tesla Balances?

January 17, 2021, by Cris
MicroStrategy CEO Michael Saylor encouraged Elon Musk to use Bitcoin at Tesla during a Twitter exchange this weekend.
Bitcoin Tesla

Elon Musk of Tesla fame briefly considered Bitcoin as a way of storing Tesla’s assets this weekend, according to Reuters.

Reuters says that Musk discussed the idea with MicroStrategy CEO and founder Michael Saylor, who wrote on Twitter:

If you want to do your shareholders a $100 billion favor, convert the [Tesla] balance sheet from USD to BTC…Other firms on the S&P 500 would follow your lead & in time it would grow to become a $1 trillion favor.

Musk then asked Saylor if “such large transactions are even possible.” Saylor replied “yes,” and noted that he has purchased over $1.3 billion of Bitcoin.

Saylor also told Reuters that he believes that Bitcoin is the “best solution to the store of value problem.” This is especially true, he said, in light of this year’s unprecedented expansion of the monetary supply.

Will Musk Use Bitcoin?

Saylor’s stance is not surprising: MicroStrategy has recently attracted attention for investing a large portion of its holdings in Bitcoin. It currently holds 70,470 BTC, an amount worth about $1.6 billion. That makes MicroStrategy the largest corporate Bitcoin investor.

Musk, on the other hand, has not been enthusiastic about Bitcoin. In January, he stated that he is “neither here nor there on Bitcoin.” In May, he stated that he holds just 0.25 BTC, an amount that is worth approximately $5800. 

As such, it is unlikely that Tesla will adopt Bitcoin any time soon. However, it is not out of the question entirely given Musk’s preliminary interest.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.

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