Investor Gary Black says he’s out on Tesla, mentioning “risky capital allocation.”
Devotees of crypto are predictably excited by Tesla’s $1.5 billion investment in Bitcoin, however, one shareholder isn’t pleased.
Gary black, a private investor and former Goldman Sachs executive who has become like an influencer – having nearly 50,000 followers on Twitter, stated this morning that he is out on Tesla, for the meantime.
He explained that “risky capital allocation” comment in another post: “TSLA has always been a higher risk, but investing $1.5B in Bitcoin makes it more risky,” he tweeted.
Black has every reason to worry: Bitcoin is blatantly volatile, and while the market has been way up in the past few months, there is no guarantee that it will stay that way. After Bitcoin shot up to an all-time high in 2017, it lost around half its value just a few days later. And then last month, the price of Bitcoin dropped by about a fifth over a single day.
Notwithstanding the hesitation, Black isn’t ruling out the possibility of buying more Tesla stock down the line.
For up-to-date Cryptocurrency, Blockchain, and Crypto-mining news, please join our Telegram Channel.