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I'm not great at finance but it reads to me as they sold the BTC as proof of concept that the BTC they are holding can be liquidated (turned back into USD) very
by joshstrange 6y ago
I'm not great at finance but it reads to me as they sold the BTC as proof of concept that the BTC they are holding can be liquidated (turned back into USD) very easily.
Having $XM USD in BTC means nothing if you can't convert it back into USD. This sell (at least according to Elon) was done just to prove to Tesla/Board/etc/whatever that it was fine to hold BTC because they could convert back to USD if needed at any time.
- ChainOfFools 6y agowhat if they were wrong? they'd both crash the BTC price for everyone, plus stick themselves close to a billion dollar write down (is Bitcoin 'inventory') or capital loss. I doubt this carefully organized stunt overlooked the importance of ensuring the market pump punchline hit. that is to say, I don't think tesla had any worries that someone wasn't ready to take the other side of their ask, very likely the round trip was already arranged from the day they agreed to take a billion in BTC onto their balance sheet. if elon can 'prove' the market has liquidity, everyone backing Bitcoin wins big, Tesla included.