According to Dan Ives of Wedbush Securities, Tesla’s strategic adoption of Bitcoin (BTC) will have a major impact on the company’s adoption of digital assets.

In an interview with CNBC on Monday, Ives said that Tesla’s Bitcoin use is “not just a fad” but part of a long-term strategy based on investment and operational dissertation.

He said: “I think Tesla will double the investment in Bitcoin.”

“There is no doubt that this is some elon muscle and Tesla will dive deep into the #bitcoin pool because they do so not only in terms of investments but also in terms of transactions,” Wedbush’s Dan Ives told TSLA $ and # btc. pic.twitter.com/0Wt2IHCdZI

Squawk Box (@SquawkCNBC) February 22, 2021
“There is no twin than this thing. Elon Musk and Tesla […] want to dive into the deepest part of the bitcoin pool because they do so not only when it comes to investing, but also when it comes to transactions. ”
Ives referred to Tesla’s recent decision to set aside $ 1.5 billion in bitcoin and begin accepting the digital asset as a form of payment. At the time of the interview, Tesla had earned about $ 1 billion in paper profits from trading with BTC. “This is more than their profit on all electric vehicle sales” in 2020, he said.

Wedbush Securities estimates that between 3% and 5% of listed companies will find themselves in a rabbit hole over the next 12-18 months, Ives said, although their dependence will be limited to investments. The 5% threshold is unlikely to be broken without more regulatory clarity around Bitcoin.

Ive’s comment on Tesla reflects his recent analysis of Bitcoin, and describes the digital asset as part of a much broader adoption history. He said the bitcoin obsession “is not a whim in our opinion, but rather the beginning of a new era on the digital currency front.”

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