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So... what is Tesla going to spend that BTC on when the time comes? They can't use it to pay wages or purchase materials. What kind of assets could Tesla poss

So... what is Tesla going to spend that BTC on when the time comes? They can't use it to pay wages or purchase materials. What kind of assets could Tesla possibly trade $1.5B in BTC for? I like the idea of cryptocurrency, but right now it seems to be more like a stock than an actual currency. There isn't much you can do with it still other than trade it back and fourth for other currencies. And I've never heard of a company making an investment like that in a stock. It'll be interesting to see how this play out.

GordonS 6y ago
> I've never heard of a company making an investment like that in a stock. It's commonplace for companies to invest cash in all sorts of things, including stocks, commodities, real-estate and other (fiat) currencies. Some of this is hedging against currency fluctuations, and some is speculative investing for gains. If Tesla had invested $1.5B in stocks or commodities etc, they couldn't use those to pay for wages etc either. Presumably they view Bitcoin as an investment, and plan to later exchange some/all for fiat currencies, just as you would with stocks or commodities.
kinghajj 6y ago
They could lend out their Bitcoin holdings to platforms like BlockFi, Celsius, or even negotiate loans OTC. Even the minimum APY of 3% would yield ~$45m per year. That would of course fluctuate with the spot price of Bitcoin.