The worldâ€™s richest manÂ caused a rise in the value of Bitcoin by changing his Twitter biography last week.
What Happened: ElonÂ Musk, the CEO of Tesla Inc (NASDAQ: TSLA) updated his Twitter Inc (NASDAQ: TWTR) bio to simply include the hashtag #bitcoin. Over 44 million followers of Musk now see the cryptocurrency front and center when looking at Muskâ€™s page.
Why Itâ€™s Important: Michael Saylor, the CEO of MicroStrategy Inc (NASDAQ: MSTR), has put full confidence in the rising valuation of Bitcoin. The CEO changed the companyâ€™s treasury assets from cash to Bitcoin in a move that has now increased the valuation of MicroStrategy.
Saylor has called for other companies including Tesla to purchase Bitcoin andÂ has offered to â€œshare his playbookâ€� with Musk. Tesla moving some or all of its treasury assets into Bitcoin could cause other firms to follow suit.
â€œIf you want to do your shareholders a $100 billion favor, convert the $TSLA balance sheet from USD to #BTC,â€� Saylor replied to Musk in a December tweet.
Musk said during a Sunday night Clubhouse interviewÂ he was fed with a â€œslice of Bitcoin cakeâ€� in 2013 and admits he was late to the party.
â€œI am a supporter of Bitcoin,â€� Musk said. â€œBitcoin is really on the verge of getting broad acceptance.â€�
Whatâ€™s Next: Musk changing his Twitter bioÂ and talking about Bitcoin openly in interviews could foreshadow Tesla acquiring Bitcoin for its balance sheet.
â€œI believe this foreshadows Tesla acquiring bitcoin for its treasury reserves. If they do, nearly every investor will then own bitcoin, given $TSLA is in the S&P 500,â€� Accelerate CEO Julian Klymochko said in aÂ tweet.
Investor and entrepreneur Anthony Pompliano has been a Bitcoin bull and expert for several years.
â€œIt would not surprise me if Tesla put 1-5% of their treasury into Bitcoin,â€� Pompliano told Benzinga, saying Bitcoin is an obvious solution for companies to protect their purchase power.
â€œEventually I believe every corporation, both public and private, will gain exposure to Bitcoin in the coming years. The companies that do it earlier, rather than later, will obviously benefit most.â€�
Investors should pay close attention to Tesla and Musk to see if the company takes the lead in Bitcoin additions here, which could have a ripple effect for large corporations.
“Now we wait and see if he takes it [a] step forward and puts it on Tesla and SpaceXâ€™s balance sheet,” saidÂ Pompliano.
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