September 30, 2022

Elon Musk To Sell 10% Of His Tesla Stocks To Buy Bitcoin? Neighborhood Speculates

3 min read

The CEO of Tesla Elon Musk has actually shaken the finance world once again, and the effects might affect Bitcoin. Via his Twitter account, Musk asked his fans if he should offer 10% or around $25 billion of his business’s stocks as an outcome of potentially new tax requirements on unrealized gains to be carried out in the U.S.

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The Tweet was posted less than 2 hours ago, and it has currently received over 1 million votes with 21 hours still to go. 54.2% of participants voted Yes on Musk’s proposal to offer his stocks, the rest have opposed the proposal. The automobile maker asked:

Much is made lately of unrealized gains being a way of tax avoidance, so I propose offering 10% of my Tesla stock. Do you support this? I will abide by the outcomes of this poll, whichever way it goes

The tweet has gotten a great deal of comments from Bitcoin and crypto investors. Some asked Musk to reinstate BTC payment for the business’s products, others celebrated the potential attention that such massive sell might get from U.S. regulators as a “bullish” sign for the crypto market.

Bitcoin financier Anthony “Pomp” Pompliano responded:

If you sell $20B+ of stock, the federal government will have the ability to money themselves for a few minutes with the tax payment you’ll make. They’ll commemorate like you stabilized the budget plan though

Nevertheless, most of repliers want Musk to put more capital either into BTC or their preferred crypto job. Hypothesizing about this possible Bitcoin purchase, monetary analyst Kevin Paffrath noted that Musk’s sibling offered over $100 million of his Tesla stock on Friday, November 5th.

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Paffrath questioned if Musk’s brother was informed about the survey and questioned the executive’s motives to cash out $25 billion of his company stock. To pay taxes or to please his fans, both seem uncharacteristic of Musk.

What Could Happen To Bitcoin If Elon Musk Sell His Tesla Stocks?

In that sense, Paffrath marvels if the executive would use the money to buy Bitcoin based upon 4 reasons. Initially, Musk would be inclined to transform the money from cash into other properties due to “inflation fears”.

Second, Bitcoin is potentially among his most significant financial investments. At least, one of the biggest he has actually exposed. Third, given that Musk sold all of his real states seems unlikely that he would put cash into a residential or commercial property. Finally, Paffrath included:

We expect $BTC to come back as payment acceptance for $TSLA vehicles. I believe $12-13b is entering into crypto. This is pure speculation on my part thought. Maybe BTC/ ETH split? Or SHIB DOGE? I see Musk as a bit more conservative on $ (cash) though so I’m betting on BTC, or a minimum of that numerous institutions might speculate that.

In February 2021, the automobile producer announced a $1.5 billion allotment in Bitcoin. As a result, the benchmark crypto experienced a massive rally from the high $30,000 s to its previous all-time high at $65,000.

Therefore, the speculation has developed a great deal of buzz amongst crypto users as many keep in mind the effect that Musk appears to cause in the area and his impact over retail financiers.

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Discussing Elon Musk’s Tweet, the CEO of MicroStrategy and Bitcoin bull Michael Saylor stated the following:

If the objective is diversification, an alternate technique to consider is transforming the $TSLA balance sheet to a Bitcoin Standard and buying $25 billion in $BTC. That would deliver diversification, inflation defense, & & more upside for all financiers in a tax efficient way.

Since press time, Bitcoin trades at $61,632 with sideways movement in the daily and weekly chart.

Bitcoin BTC BTCUSD Elon Musk
BTC moving sideways in the weekly chart. Source: BTCUSD Tradingview