Not all analysts are convinced that Tesla’s recent $ 1.5 billion acquisition of Bitcoin (BTC) will prove to be as beneficial for the tech giant as it is for the price of BTC.
Saxo Bank’s head of equity strategy, Peter Garneri, wrote in a research note that Elon Musk exposed Tesla and its investors to “enormous risks,” Reuters reported on Feb.11.
“Elon Musk has exposed Tesla to enormous market risks,” Garneri wrote, adding that the biggest concern for investors is Bitcoin’s long-term value, given the extreme market volatility it has experienced since its inception.
Elsewhere, former Goldman Sachs CEO Gary Black announced to Twitter followers on February 8 that he was leaving Tesla Inc (TSLA), citing “risky capital allocation” among the reasons.
Bitcoin’s value surged 20% in 24 hours immediately following news of Tesla’s $ 1.5 billion acquisition, sparking a new boom in the cryptocurrency market that led to the continued use of Bitcoin, Ether (ETH), and more. Meanwhile, in the following trading days, Tesla’s share price fell 7.5%.
At the same time, Brett Winton, director of research at ARK Invest, which allocates 8.75% of the portfolio to Tesla, responded that the investment represents “the right use of cash,” adding, “We’re happy with how we expect. situations in which we place our clients. ” Before her. ”
Grayscale CEO Michael Sonnenstein recently suggested that the public release of Bitcoin by Elon Musk would trigger a race for investment from institutional buyers and other technical “ideas.” Sonnenstein said grays, who have a vested interest in the case, saw a stronger influx in 2021 than the one that registered in a record 2020.