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As much as 5% of public corporations will observe Tesla’s Bitcoin purchase, says Wedbush analyst

02/22/2021

Dan Ives, Wedbush Securities’ managing director, says corporations are going to begin FOMOing into Bitcoin very quickly.

Tesla’s strategic embrace of Bitcoin (BTC) could have a dramatic impression on company adoption of the digital asset, in line with Dan Ives of Wedbush Securities. 

In a Monday interview with CNBC, Ives mentioned Tesla’s publicity to Bitcoin is “not only a fad,” however a part of a long-term technique that’s pushed by an funding thesis and enterprise thesis.

“I believe Tesla goes to double down on its Bitcoin funding,” he mentioned.

“No double that is one thing Elon Musk and Tesla […] they’re going to dive into the deep finish of the pool on Bitcoin as a result of they’re not simply doing it from an funding perspective however from a transactional perspective.”

Ives was referring to Tesla’s latest resolution to allocate $1.5 billion to Bitcoin and start accepting the digital asset as a type of cost. On the time of the interview, Tesla had made about $1 billion in paper good points on its BTC commerce. “That’s extra they’ve comprised of a revenue in all EV gross sales” in 2020, he mentioned.

Wedbush Securities believes that 3% to five% of publicly-listed corporations will go down the Bitcoin rabbit gap over the subsequent 12 to 18 months, though their adoption will likely be restricted to investments solely, Ives mentioned. The 5% threshold is unlikely to be damaged with out extra regulatory readability round BTC.

Ives’ commentary on Tesla mirrors his latest evaluation on Bitcoin, the place he described the digital asset as a part of a a lot bigger adoption story. Bitcoin mania “shouldn’t be a fad in our opinion, however relatively the beginning of a brand new age on the digital forex entrance,” he mentioned.