Tesla, MicroStrategy… Is Bitcoin going to make it into the corporate treasury?

Tesla, MicroStrategy... Is Bitcoin going to make it into the corporate treasury?

Bitcoin set an all-time record at more than $48,000, while Tesla and MicroStrategy invested a large portion of their cash in the No. 1 cryptographic currency. The purchase of Tesla « reinforces the idea that Bitcoin has a place in corporate treasuries, » according to cryptomatics specialist Cryptobroker.

There’s no stopping Bitcoin. The Queen of Cryptomoney has set a new all-time high at $48,215.82, while Tesla, which intends to accept it as a means of payment, has invested $1.5 billion in it. « Elon Musk has given Bitcoin the strongest support in the history of cryptonics, » said Michael Hewson, analyst at CMC Markets. Tesla’s boss, the world’s richest man, had frequently praised Bitcoin and cryptomoney on his Twitter account, but this is the first time a group the size of Tesla has invested a portion of its cash in Bitcoin.

Private companies are usually reluctant to exchange their cash dollars for an asset as turbulent as Bitcoin. « Bitcoin’s high volatility will inevitably lead to volatility in Tesla’s earnings and make the company’s performance less predictable, » notes Ipek Ozkardeskaya, analyst at Swissquote. Another U.S. company, software company MicroStrategy, has purchased more than $1 billion worth of Bitcoin in recent months. But this mid-size company is in a very different position than the Wall Street giant Tesla: MicroStrategy’s stock has become a way to bet on the price of Bitcoin.

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Up 587% year-on-year to $1,041 at Monday’s close, its price is more in line with the development of the cryptomoney industry than the company’s news. In announcing in December the purchase of additional bitcoins, the group’s CEO said he considered « the management of our cash flow as an explanation for the performance of our share ».

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The players in the cryptomatics industry are therefore pleased that a larger company has entered the market: the purchase of Tesla « does not completely put the cards down, but reinforces the idea that Bitcoin has a place in corporate treasuries, » says Patrick Heusser, a broker with the cryptomatics specialist Cryptobroker.

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However, Bitcoin and other cryptosystems are not universally accepted: Janet Yellen, Joe Biden’s new Secretary of the Treasury, recently warned that cryptosystems are « primarily used » to finance illegal activities and that the government must ensure that they do not become a means of laundering dirty money.

Tesla, MicroStrategy… Is Bitcoin going to make it into the corporate treasury?
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