Given that Bitcoin is too volatile, other big companies will not follow Tesla to buy
After the announcement of Tesla’s $1.5 billion investment in Bitcoin, the price of Bitcoin hit a new high; market analysts predict that many big companies, such as Apple, Twitter, and Oracle, will join the buying BTC army; and Morgan Chase said, don’t expect other big companies to follow suit and add Bitcoin to the balance sheet like Tesla. Former Goldman Sachs executive Gary Black also expressed the same view, pointing out that Tesla’s assets have always been relatively high. The risk of investing 1.5 billion US dollars in BTC makes it riskier.
Tesla’s bet on Bitcoin is too bold, other big companies will not follow suit
After the announcement of Tesla’s investment of $1.5 billion in Bitcoin, the price of Bitcoin hit a new high. JPMorgan Chase stated that don’t expect other big companies to follow suit and add Bitcoin to the balance sheet like Tesla.
The company’s strategist Nikolaos Panigirtzoglou and others wrote in the report that the main problem with mainstream corporate finance departments following Tesla’s idea is the volatility of Bitcoin. If 1% of Bitcoin is added to the portfolio configuration, it will lead to a significant increase in overall investment portfolio volatility. Besides, due to the 80% annualized volatility of Bitcoin, the volatility of the portfolio under this configuration will rise to 8%.
Former Goldman Sachs Executive: Investing in BTC makes Tesla riskier
Gary Black, a former Goldman Sachs executive, tweeted that Tesla’s assets have always been at high risk. Invested $1.5 billion in BTC to make it riskier. Moreover, Tesla’s earnings report is vague and lacks details. , Does not discuss strategic priorities. If Tesla bought $1.5 billion in BTC in January, why not share the logic with shareholders during the earnings meeting?