PAST Week in Review: Tesla buys $1.5bn of Bitcoin
Tesla has bought $1.5 billion worth of bitcoin, according to a filing with the SEC.
The past week was another week of frenzy in the crypto world, with bullish sentiment aplenty. PayPal released their first revenue report since they introduced crypto, there was a big crypto announcement from Visa, and CME launched Ethereum futures – not to mention Michael Saylor held his corporate crypto conference. Last but not least, breaking news from Tesla has seen the bitcoin price power through to a new all-time high past $47k.
The company said it bought bitcoin for “more flexibility to further diversity and maximize our returns on cash”. In addition to the purchase, the electric car company headed by crypto-advocate Elon Musk said it would also start accepting bitcoin payments in exchange for its products.
Since the announcement, the price of bitcoin has catapulted to a new all-time high of more than $47k at the time of writing.
It can’t really be said that the news came out of the blue, given Musk’s recent decision to put Bitcoin in his bio. There was also a Twitter exchange in December of last year between Musk and Michael Saylor that certainly hinted at the move:
Michael Saylor and MicroStrategy’s playbook for corporate bitcoin adoption
The CEO and self-appointed Bitcoin salesman Michael Saylor held his long-awaited virtual WORLD.NOW bitcoin-themed conference last Wednesday, where he encouraged fellow business executives to jump aboard the bitcoin train in order to avoid financial serfdom.
He also detailed the crypto playbook that catapulted his 30-year-old firm to new heights in less than a year. In his solo address, he focused on practical business strategies and procedures that he believes will spark a monetary revolution should more corporations get on board.
MicroStrategy was the first US corporation to invest its dollarised treasury in bitcoin and is currently sitting on a 71,079 BTC reserve. Determined they won’t be the last, a team of accountants, lawyers, and company execs joined in the effort to educate other corporate execs around the practicalities of bitcoin accumulation.
Saylor said: “Every company has to make one of two choices when faced with a world of belligerent money printing”. He continued, “You either have to decapitalize, which is kind of like self-destruct or you have to recapitalize with an asset which is going to appreciate faster than the rate of money supply expansion. This is where bitcoin comes in.”
Saylor also offered a playbook to companies approaching BTC as a business, saying firms could start by developing bitcoin tools, developing software, or providing bitcoin infrastructure, to name a few.
Saylor concluded: “We’re at the beginning of a very very long trend here. And so, with that, I have more stuff to say, I don’t have time to say it, but, you know, follow me on Twitter, and stay tuned.”
Pro-bitcoiner Cynthia Lummis assigned to Senate Banking Committee
The Senate has assigned pro-bitcoin senator Cynthia Lummis to the Banking, Housing, and Urban Affairs Committee.
Marking a major win for the crypto community, Lummis detailed her intention to educate fellow senators on the technology: “Through my role on the Banking Committee, I hope to shine a light on many of these pioneering efforts and work with federal regulators to ensure that regulation of digital assets is structured to encourage innovation, instead of stifling it,” she said about her appointment. “I also look forward to providing regulatory relief to our community banks and ensuring that we have vibrant safe financial markets.”
Appearing on Anthony Pompliano’s podcast last week, Lummis announced plans to form a financial innovation caucus in the Senate to promote a “proper understanding and responsible regulation of things like digital assets and emerging financial technologies.”
She also called bitcoin a better store of value for consumers and labeled it a potential hedge against the dollar. Excitingly, Lummis is the first sitting senator to publically hold the asset.
The caucus hopes to counter-arguments that cryptocurrencies are primarily a money-laundering tool in order to highlight opportunities for innovation in the US. She told the Pomp Podcast that she’d already had a call with Treasury Secretary Janet Yellen and said she believes the Treasury Secretary has an open mind around digital assets – which in line with Yellen’s comments about crypto in her written testimony for her Senate confirmation.
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