Since Tesla announced in the first week of February that Tesla holds $1.5 billion in Bitcoin on its balance sheet, the company’s stock price has fallen by more than 30%. An analyst said that if Tesla announces that it will sell bitcoin, its shareholders will be “very supportive.” In addition, after announcing multiple bitcoin inventory purchase announcements, Microstrategy’s stock has also fallen sharply in the past 30 days.
Critics say Tesla should sell Bitcoin
After Tesla announced to the world that its balance sheet is worth 1.5 billion U.S. dollars worth of bitcoin, the price of bitcoin rose sharply that day. However, 30 days after the incident, Tesla’s (NASDAQ: TSLA) shareholders did not seem to like the idea that much. In addition, on social media and forums, critics and even lawyers have called on companies such as Tesla to make such decisions. Since the acquisition, Tesla stock has not performed so well, although the company does indeed profit from the appreciation of BTC.
On the day that Tesla’s Bitcoin announcement went viral, TSLA’s stock price was exchanged at a price of $863 per share. Today, TSLA has fallen by -30.82%, and the transaction price is $597 per share, the day before the market opens on Monday. Gary Black, the former CEO of Aegon Asset Management, discussed Tesla’s Bitcoin holdings on Twitter three days ago and said that if Elon Musk’s company sells BTC, shareholders will be happy.
“Imagine the positive momentum [Tesla] Will create it,” Black Tweet. “If they announce the sale of their [bitcoin] Position and authorization [Tesla] Stock repurchase. Very unlikely, but the shareholder meeting is very supportive. “He added.
However, many people disagreed with Black’s statement, and one said he did not want them to buy back shares. The person said: “I want them to invest in growth and make another billion on their Bitcoin positions.” Reply To Black. The former CEO of Aegon Asset Management disagreed and said that “absolutely makes no sense.”
“If you ask 100 institutions [Tesla] Are the shareholders willing? [Tesla] Invest the remaining cash of $1.5B in BTC, or invest the remaining cash of $1.5B [Tesla] Inventory, 95/100 will choose [Tesla] in stock. “Black insisted.
Either way, it is excess cash.However, from the $8T active managers bought from the S&P 500 Index, you will get more benefits [Tesla], in case [Tesla] Have a stock repurchase plan instead of buying [bitcoin] There is excess cash.
The share price of the micro-strategy to buy Bitcoin has fallen by more than 50% in the past month
At the same time, Microstrategy has been buying Bitcoin regularly for several months and has also profited from this decision.
On March 5, 2021, Microstrategy announced that it has acquired another $10 million worth of BTC, and currently holds 91,064 bitcoins on the company’s balance sheet. But in the past 30 days, Microstrategy’s stock (NASDAQ: MSTR) has underperformed and has fallen -51.25% since February 9, 2021.
On that day in February, the price of MSTR was $1,272. Today’s statistics show that before the close on Friday, the price of the stock was $620.
What do you think of the criticisms and concerns of those who think these companies should sell their bitcoins to please shareholders? Let us know your thoughts on this topic in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, Google-MSTR stock and TSLA stock, Twitter,
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