On Monday, one of the most followed companies in the world sent the value of Bitcoin price higher after a $1.5 billion investment in the cryptocurrency was unveiled.
What Happened: Tesla Inc TSLA purchased $1.5 billion in Bitcoin in January. The company expects to accept cryptocurrency as payment in the future.
Tesla will invest a portion of its cash in alternative reserve assets like digital assets, gold bullion and gold ETFs in the future. “Our Bitcoin holdings are high liquid,” the company said.
“If you want to do your shareholders a $100 billion favor, convert the $TSLA balance sheet from USD to $BTC,” Microstrategy Inc MSTR CEO Michael Saylor said in a previous tweet to Musk.
Musk said in recent a Clubhouse interview he was late to the Bitcoin party but is a supporter.
“It would not surprise me if Tesla put 1-5% of their treasury into Bitcoin,” Anthony Pompliano told Benzinga last week, saying Bitcoin is an obvious solution for companies to protect their purchase power.
Related Link: Could Tesla Be Planning Bitcoin As Treasury Reserve?
MicroStrategy Hits New Highs: Bitcoin mining and other related stocks are moving higher Monday on the optimism around the cryptocurrency.
MicoStrategy shares hit 52-week highs of $925. The company and its CEO could become a huge focal point for Bitcoin acceptance by large corporations.
Microstrategy was one of the first large companies to acquire Bitcoin with its treasury reserves. As of Febr. 2, the company has 71,079 Bitcoin it purchased at an average price point of $16,109. The Bitcoin are valued at $3.14 billion on Monday compared to a purchase price of $1.15 billion.
The company recently hosted a Bitcoin event with many industry leaders where it also showed ways that companies could get exposure to the cryptocurrency.
Other Stocks Moving: The rise of Bitcoin is sending shares of companies that own Bitcoin or help with the mining of the cryptocurrency higher.
- Marathon Patent Group MARA shares are up 26% to $28.27
- Overstock.com OSTK shares are up 6% to $98.50.
- SRAX Inc SRAX shares are up 20% to $4.85
- Bit Digital Inc BTBT shares are up 24% to $21.71.
- SOS Ltd SOS shares are up 11% to $4.29.
- Paypal Holdings Inc PYPL shares are up 3% to $276.23.
- Square Inc SQ shares are up 3% to $248.
- The9 Ltd NCTY shares are up 29% to $30.
- Sino-Global Shipping America SINO shares are up 52% to $10.16.
- 500.com WBAI shares are up 8% to $14.13.
- CleanSpark Inc CLSK shares are up 15% to $36.80.
- Ebang International Holdings EBON shares are up 13% to $6.60.
- Canaan Inc CAN shares are up 19% to $7.15.
- Riot Blockchain Inc RIOT shares are up 21% to $28.15.
BTC Valuation: Bitcoin trades at $44,160.82 at time of writing. The cryptocurrency is up 13% in the last 24 hours, breaking its previous all-time high of $42,002.55.
Bitcoin is up 43% in the year-to-date period. The cryptocurrency passed Tesla as the seventh most valuable company or cryptocurrency, according to Assetdash.com.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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