Quote:
Originally Posted by Wayne 962
And here is an opinion further down in that article that I somewhat agree with:
If Tesla hasn't already sold it's Bitcoin holdings, then it will have to declare a huge loss on it in their Q2 report, assuming the Bitcoin price doesn't bounce back. So, my prediction is that Elon will face a rash of shareholder lawsuits from angry shareholders who feel that the CEO risked a large portion of the Tesla cash pile on a huge speculative asset - insanely being one that he tanked himself!
What an odd period in time we have going on right now...
-Wayne
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Thats not how PL works... if they hold it as an asset they dont have to declare "a huge loss," its on their BS. The person you quoted does not know basic accounting, which misleads readers. They suggest that somehow Tesla
giving the money away is a better option than holding an asset they obviously think will appreciate, even if there is a risk it depreciates. 100% loss vs ???. Im sorry, I can't take these arguments seriously as its too obvious to me they have no idea what they are commenting on. Also, Tesla is still in the green on BTC (for now,) and I would bet they plan to hold long term, so profitability forecasting sales of BTC is not even a thought in their minds. Plus cash and cash equivalents for Tesla is like $20B, so this $1.5B bet is not some all in make or break risk event... To me, we are still in asymmetric risk, yes it could easily drop back to around $10k where it resided for the past few years, or it could continue and go exponential over the next 10-15 years. IMO its never going back to $5-$10k, so you risk 2/3rds loss for 20x gain, while cash loses purchasing power every day. To me its a no brainer to hold minimum 5% of NW and as much as 20% in crypto.