Ever since Tesla announced the company held $1.5 billion in bitcoin on its balance sheet during the first week of February, the company’s stocks have dropped over 30%. One analyst says that Tesla’s shareholders would be “very supportive” if the company announced it would sell the bitcoin. Additionally, the shares of Microstrategy’s firm have also dropped considerably during the last 30 days, after multiple bitcoin treasury purchase announcements.
Critics Say Tesla Should Sell Bitcoin
After Tesla announced to the world that there was $1.5 billion worth of bitcoin (BTC) on its balance sheet, the price of BTC shot up considerably that day. However, 30 days after the fact, it seems shareholders of Tesla (NASDAQ: TSLA) are not so hip to the idea. Furthermore, on social media and forums, critics and even lawyers, have called out companies like Tesla for making such decisions. Tesla shares have not fared so well since the purchase, even though the firm did profit nicely from BTC value increase.
The day the Tesla-bitcoin announcement went viral, shares of TSLA were swapping for $863 a unit. Today, TSLA is down -30.82% and exchanging hands for $597 per share the day before Monday’s stock market opening. The former CEO of Aegon Asset Management, Gary Black, discussed Tesla’s bitcoin holdings on Twitter three days ago and said shareholders would likely be pleased if Elon Musk’s company sold the BTC.
“Imagine the positive momentum [Tesla] would create,” Black tweeted. “If they announced the sale of their [bitcoin] position, and authorized a [Tesla] stock buyback instead. Highly unlikely, but shareholders would be very supportive,” he added.
However, a number of people disagreed with Black’s statements and one individual said he didn’t want them buying back stock. “I want them investing in growth, and making another billion on their BTC position,” the person replied to Black. The former CEO of Aegon Asset…