The recent bitcoin purchase initiated by Tesla is a big deal in many industry experts’ eyes, and what’s ironic about it is that with the purchase, the electric car company only trails MicroStrategy in terms of how much bitcoin it owns. Right now, Tesla has bought about $1.5 billion, which is a huge number on paper, but it pales in comparison with the BTC ownership of MicroStrategy, which is about $3.1 billion at the time of writing.
MicroStrategy Is Still the BTC King
The interesting thing about this is that Tesla’s Elon Musk initially put out a tweet discussing the possibilities of converting some of the car company’s cash and reserves into BTC. Who should answer? None other than MicroStrategy chief executive Michael Saylor. He commented in a Twitter message that Musk would be doing his investors a great favor by presenting them with BTC and crypto options, and it looks like Musk may have taken his advice.
MicroStrategy has made a real name for itself over the past six months given that it was one of the few public companies to come out and pledge support for the world’s number one digital currency by market cap. It began initiating purchases of the asset in August of last year and has since set up a large path for additional institutional players, many of whom have followed in the company’s footsteps and purchased bitcoin themselves. Some of these companies include Square, Stone Ridge and MassMutual.
In addition, Michael Saylor recently hosted an international webinar that discussed the benefits of bitcoin and showed other companies how they could invest some of their money into the world’s leading digital asset. During the summit, Saylor commented:
If your company has money on its balance sheets and it’s sitting in fiat currencies like euros and dollars, they are losing about 15 percent of their purchasing power each year. The simple solution is to convert some of that cash into bitcoin.
Following the Tesla bitcoin purchase, the price of the asset shot well beyond the $44,000 mark to reach a new all-time high, though now it appears the currency has calmed down somewhat and is trading for around $42,900 per unit at press time.
Either way, many industry leaders believe this to be a good thing, with some claiming that it will launch bitcoin into much more mainstream territory. Stefan George – co-founder and chief technology officer at crypto tech enterprise Gnosis – explained:
Tesla’s bitcoin acquisition is a strong signal for a new era of integration between the cryptocurrency ecosystem and mainstream business, in which tokens increasingly act as not only a store of value but tangible mediums of exchange.
This Will Really Push BTC Forward
Dermot O’Riordan – partner at blockchain equity firm Eden Block – said:
This moment will likely be looked upon in years to come as a genuine tipping point.