The former Goldman Sachs shareholder reacted strongly on Twitter, inviting Tesla to sell its bitcoin and buy back the shares.
TSLA shares fell 28% from $ 863.42 to $ 621.44 after news broke on February 8 that Tesla had acquired $ 1.5 billion from BTC.
MicroStrategy shares looked worse in the short term. The value of the company, led by Michael Sailor, the Bitcoin Bull, which has just completed its latest BTC acquisition for $ 15 million, has now dropped 50% from $ 1,315 in full-time since Feb.9.
Tesla’s stock market flop was likely driven by a number of factors. In early February, it was reported that Tesla was reprimanded by the Chinese government for quality control problems after receiving consumer complaints. The stock market is also experiencing higher volatility, with the S&P 500 down 4.1% over the past 30 days.
But a tweet from longtime Tesla analyst Gary Black, who has years of financial management experience, sparked controversy over whether Tesla’s Bitcoin purchase last month benefited investors.
“I don’t want them to buy back shares,” Twitter user Techgnostik said. “I want them to invest in growth and get another billion from their bitcoin status.”
In response, Black suggested that TSLA will also attract more fund managers to participate in the buyback program, which, in his opinion, is more profitable for an investor than buying BTC for “extra money.”
Some Twitter users agreed that share buybacks proved to be a more convenient way to use money, while others felt there was a lot of interest in what Tesla did with its 8% cash reserves.
It is not easy to determine the impact of buying bitcoins on a company’s bottom line. Although MicroStrategy’s share price has dropped by half in one month, MSTR shares have still surged 340% (from $ 146.63 to $ 645.66) since the company announced its first purchase of 21,454 bitcoins on August 11, 2020. The BTC price is currently up 310% since the same date.