Gary Black, a well-known Tesla advocate and the Managing Partner of Future Fund, has publicly disagreed with the idea of Tesla Inc. (NASDAQ:TSLA) repurchasing Bitcoin (CRYPTO: BTC). Black voiced his opposition on the social media platform X on Monday.
What Happened: Black’s statement responded to an X user, who proposed that Tesla should contemplate buying back the Bitcoin it had previously sold. Tayar’s suggestion was posted on a thread by Black that discussed common investor errors when comparing a stock’s P/E to near-term EPS growth.
“Please no. You can buy #BTC as an investor. Why would we want $TSLA to do that?” Black retorted to Tayar’s proposal, indicating his stance that individual investors, not corporations, should invest in Bitcoin.
In a follow-up discussion, Black asserted that acquiring and selling Bitcoin isn’t a sound capital allocation for Tesla, citing it beyond the company’s core competencies, despite Tayar suggesting it could enhance earnings.
See Also: Dogecoin Soars As Elon Musk’s X Payments Gains Ground, Enthusiasts Rally With $800M Boost
Why It Matters: This disagreement comes in the wake of Tesla’s history with Bitcoin. Tesla disclosed a $1.5 billion Bitcoin purchase in February 2021 and later sold portions of its holdings, capitalizing on the digital currency’s gains.
However, Black’s skepticism towards Bitcoin is not new. In January 2024, he warned that Bitcoin could experience a 70% plunge. He attributed this prediction to the lack of expected institutional interest and warnings from renowned investors about Bitcoin’s lack of intrinsic value.
Despite his stance on Bitcoin, Black remains optimistic about Tesla’s future, particularly regarding the Cybertruck. He believes the Cybertruck could be a key catalyst to Tesla’s earnings in 2025, provided the company can scale production.
Tesla remains the fourth-largest holder of Bitcoin among public companies. At the time of writing, the Elon Musk-led company held a total of 10,500 units, which were valued at $740.28 million. Among such companies, the largest holder, by far, is MicroStrategy Inc. (NASDAQ:MSTR), which is sitting on a pile of Bitcoin worth more than $12 billion.
Price Action: At the time of writing, Bitcoin traded 5.15% higher at $70,480.40, according to data from Benzinga Pro.
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