Tesla's Elon Musk asks about converting 'large transactions' to bitcoin

Tesla's Elon Musk asks about converting 'large transactions' to bitcoin

Red carpet for the Axel Springer award, in Berlin
FILE PHOTO: SpaceX owner and Tesla CEO Elon Musk looks on after arriving on the red carpet for the Axel Springer award, in Berlin, Germany, December 1, 2020. REUTERS/Hannibal Hanschke/Pool

REUTERS: Elon Musk on Sunday (Dec 20) asked about the possibility of converting "large transactions" of Tesla's balance sheet into bitcoin, according to a Twitter exchange between Musk and a well-known advocate for the digital currency.

Michael Saylor, chief executive officer of MicroStrategy, in a tweet to Musk, suggested that the billionaire Tesla founder and head, make the move.

"If you want to do your shareholders a US$100 billion favor, convert the US$TSLA balance sheet from USD to #BTC," Saylor wrote in his tweet. "Other firms on the S&P 500 would follow your lead & in time it would grow to become a US$1 trillion favor."

"Are such large transactions even possible?" Musk replied to Saylor.

"Yes. I have purchased over US$1.3 billion in #BTC in past months & would be happy to share my playbook with you offline ...," Saylor tweeted.

Tesla and Musk could not be reached for comment.

"Every CEO faces the challenge of how to preserve & enhance shareholder value in the face of this year’s unprecedented monetary expansion," Saylor said in a message to Reuters.

"Bitcoin is the best solution to the store of value problem faced by every individual, investor, & corporation on earth," Saylor said.

Shares of Tesla rose to a record high on Friday in a frantic day of trading as investors geared up for the electric carmaker's much anticipated entrance into the benchmark S&P 500 index on Monday.

Bitcoin rose to a high of US$24,299.75 on Sunday, after passing the US$20,000 milestone for the first time last week, amid surging interest from larger investors. Bitcoin was last at US$23,60.98 up 2.88 per cent.

Source: Reuters