Over a month ago, we correctly predicted today’s “shock” announcement by Tesla, in which Elon Musk’s company decided to pivot once again, this time into the word of cryptocurrencies, by purchasing $1.5 billion in bitcoin (an amount which will give it tremendous leeway in non-GAAP financial when accounting for XBT Mark-to-Market moves, giving it even more buffer to beat estimates).
Discussing the major US companies which we expected would announce shifts away from dollar-based cash into bitcoin, we said “one such company which we are convinced will announce it is converting billions of its existing cash into bitcoin, is none other than Tesla, whose CEO Elon Musk was urged by MSTR CEO Saylor to make a similar move with Tesla’s money. And since Musk, already the world’s richest man thanks to the most aggressive financial engineering on the planet, has never been one to shy away from a challenge, we are absolutely confident that it is only a matter of time before Tesla announces that it has purchased a few billion bitcoin.”
While as of this morning, this prediction has clearly come true, we’ll remind readers that our January forecast had a follow-on component: once Tesla breaks the seal on major companies converting cash (and equivalents, including buybacks) into bitcoin, other companies would quickly follow suit. This prompted us to inquire the general public which company would be next.
Which will be the next top 20 company to convert (some) cash to crypto
— zerohedge (@zerohedge) February 8, 2021
Conveniently, just as we were scratching out heads over this critical question – which also answers how Bitcoin will hit $100,000 next – RBC published an initiating coverage report on AAPL (with a street-high price target of $171), in which analyst Mitch Steves explained why he believes that AAPL should focus on developing an “Apple Wallet” concept first (and leave the Apple car for later), in order to leverage its 1.5 billion installed user base and to unveil a Coinbase-like Apple Exchange later which allows bitcoin transactions and which would add about $50 billion in value.- READ MORE
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