Elon Musk is the biggest stakeholder in Tesla, which owns around 48,000 Bitcoin. If the cryptocurrency goes down, so his net worth.
Now that Bitcoin is in the midst of a major market correction, Elon musk is now seeing his top spot on the list of the world’s richest people go downwards.
After acquiring the top spot on the Bloomberg Billionaires Index of the world’s richest people last January, the Tesla CEO was overtaken by Amazon founder Jeff Bezos in the first place.
Now that Musk has only $183 billion to Bezos’s $186 billion, he can now blame Bitcoin.
The South Africa-born businessman is the biggest stakeholder in the electric car company he runs, handling around 241 million shares. Tesla stock prices have been in ridiculous mode since the fall, surging up from a price of $408 last November 16 to a high of $883 on January 26.
And then Tesla bought $1.5 billion in Bitcoin. Since the purchase has been revealed last February 8, share prices have dropped from $863 to $709. That sums up to about $36 billion less than Musk personally can count into his net worth.
Tesla’s Bitcoin purchase has been a blessing for the price of the cryptocurrency. But on the morning of February 8, BTC’s price was $39,000; and in the next two weeks, it ticked all the way up to an all-time high of $58,000. The price pump gave Tesla an estimated $1 billion+ in profit.
It would have been if Tesla cashed out yesterday. Bitcoin had dropped $10,000 off its price tag in the past 24 hours. In the process, it has taken some part off Tesla’s purchase.
Notwithstanding the lack of correlation between Tesla and Bitcoin price movements up to now, it has been noted that Tesla’s stock price is “heavily tied” to Bitcoin or will be moving forward.
If it does happen, everyone may witness the volatile Musk moving in the list of richest people, his company’s fortune is tied to an even more volatile currency.
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