Tesla’s Bitcoin Bet Turns Negative for Elon Musk

Elon Musk is no longer the richest person on the planet. The CEO of Tesla has lost around $30 billion of wealth after the recent crash in Tesla stock and Bitcoin. The electric-car maker revealed on 8 February that the company holds nearly $1.5 billion worth of Bitcoin, TSLA stock plunged more than 20% since the announcement.

According to the Bloomberg Billionaire Index, Musk now has a wealth of approximately $180 billion, down nearly $4 billion in the last 24 hours. Jeff Bezos became the richest person in the world with a total net worth of $187 billion.

At the time of Tesla’s announcement of its Bitcoin investment, Tesla stock was trading at $860 with a total market cap of more than $800 billion. The stock plunged to as low as $650 on Tuesday after losing more than $200 billion market cap in just 15 days.

Despite the reason that Tesla’s Bitcoin bet resulted in significant profits for the company, the company’s shareholders are not so happy about Tesla’s entry into the crypto market. Musk supported Bitcoin on numerous occasions on Twitter and said during an interview that the world’s largest cryptocurrency is on the verge of mass adoption.

Musk and Twitter

The CEO of Tesla expressed his views about cryptocurrencies frequently on the social networking platform. In a tweet on 20 February, Musk mentioned that the price of Bitcoin and Ethereum looks too high. In a different tweet, Musk said that Bitcoin is almost as bad as fiat money. Bitcoin and Ethereum are down more than 15% since then as the crypto market lost nearly $200 billion yesterday. Peter Schiff, a senior economist, criticized Musk for his Bitcoin move and said other CEOs are not likely to follow his example.

“Two weeks after Elon Musk announced that he spent $1.5 billion of shareholder money buying Bitcoin, Tesla stock entered a bear market, plunging 20% from its all-time high set on Jan. 25th, and more than 16% since disclosing the Bitcoin buy. Not an example other CEOs will likely follow,” Schiff mentioned yesterday.

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