Tesla’s strategic rollout of Bitcoin (BTC) will have a dramatic impact on the institutional rollout of the digital asset, according to Wedbush Securities’ Dan Ives.
In an interview with CNBC on Monday, Ives He said What Tesla’s exposure to Bitcoin “is not just a fad” but part of a long-term strategy based on an investment and business thesis.
“I think Tesla will double its investment in Bitcoin,” He said.
“No doubt that’s something @elonmusk and @ Tesla You will continue to dive into the deep end of the pool #bitcoin because they do it not only from an investment perspective, but also from a transactional perspective, ”says Dan Ives of Wedbush $ TSLA and #btc. pic.twitter.com/0Wt2IHCdZI
to???? Squawk Box (@SquawkCNBC) February 22, 2021
“Sure, that’s something Elon Musk and Tesla are doing […] They will jump into the bitcoin pool because they do so not only from an investment perspective but also from a transactional perspective. “
Ives related Tesla’s recent decision to deploy $ 1.5 billion in Bitcoin and accept the digital asset as a payment method. At the time of the interview Tesla had made $ 1 billion in paper revenue from its BTC purchases. “That’s more than they’ve got from all EV sales,” he said in 2020.
Wedbush Securities thinks so Between 3% and 5% of publicly traded companies will adopt Bitcoin in the next 12 to 18 months, though they will be limited to investing only, Ives said. It is unlikely that the 5% threshold will be exceeded without greater regulatory clarity on BTC.
Ives’ comment on Tesla echoes his most recent analysis of Bitcoin, in which he described the digital asset as part of a much broader adoption story. Bitcoin mania “is not a fad in our opinion, but the beginning of a new era in digital currency,” he said.