At the beginning of 2021, Elon Musk gave Bitcoin its first major endorsement, and this transaction was the one that, more than any other high-profile purchase, sent Bitcoin on a moonshot and cemented its status as an investment for the general public.
Elon Musk gave Bitcoin its first major endorsement in 2021. Given that most companies try to avoid putting their cash reserves in jeopardy, Musk’s well-known purchase of $1.5 billion worth of the “king of cryptocurrencies” using spare cash from the electric vehicle manufacturer’s balance sheet is regarded as a highly unorthodox move for the simple reason that most businesses try to avoid putting their cash reserves in jeopardy.
Musk and Zach Kirkhorn’s Statement
Musk and CFO Zach Kirkhorn have both made statements to the public in which they have expressed a great deal of pride in the fact that they were the first to implement a novel method of placing bets in order to make a significant amount of money on dollars that virtually every other business wants to keep secure.
Kirkhorn stated that the goal was to “get some return” on cash that was “not immediately being used for operations.” during the conference call for the first quarter of the preceding year. A couple of weeks earlier, Kirkhorn had gone to the extent of adding a second title to his rank as CFO, and that title was “Master of Coin.” This was accomplished by submitting a document to the SEC.
The significant experiment, on the other hand, has not as of yet produced the results that were hoped for. On the morning of May 11, the price of bitcoin dropped below $29,400, erasing all of the opulent profits that Musk had previously made.
In spite of a recovery that occurred later in the day, the price of bitcoin is still relatively close to the level at which it is neutralizing its losses. Let’s go over how Musk’s wager took shareholders on a roller coaster ride that was so wild that it left them dizzy not out of awe but out of fear, but ultimately resulted in nothing happening. The ride was so wild that it left shareholders dizzy not out of awe but out of fear.