Bitcoin (BTC) Tops $47,500, Will Tesla’s Entry Spark Massive Corporate Adoption?

Tesla’s announcement of its $1.5 billion Bitcoin (BTC) purchase has sparked a massive rally in the world’s largest cryptocurrency. Over the last 24-hours, the BTC price has gained over 22% hitting its new all-time high of $47,500 a few hours back.

At press time, Bitcoin is trading at $47,039 with a market cap of $863 billion. Interestingly, soon after the Tesla announcement, BTC has moved past Tesla’s valuations. The biggest question now is will corporate America follow suit?

Speculations are already ripe that big tech giants like Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and others can put part of their cash treasury into BTC. The speculation of Apple’s entry into Bitcoin is already catching up steam.

Just like Tesla, if the top-four tech giants were to put 10% of cash reserves, we are seeing another $50 billion corporate money inflowing into Bitcoin.

MicroStrategy CEO Michael Saylor has been a big advocate of getting the corporate money into Bitcoin. Last week MicroStrategy conducted its World 2021 conference with over 800 attendees from the corporate world. Michael Saylor has shared his Bitcoin Corporate Playbook offering businesses the simple procedure to push their reserve cash in BTC. Speaking on Tesla’s Bitcoin purchase, Saylor said:

“Tesla $TSLA has de-risked the acquisition of #bitcoin by public companies and accelerated the digital transformation of corporate balance sheets. Treasurers are now thinking about how to convert a non-performing asset into the best performing asset”.

Crypto Industry Players Positive on Bitcoin (BTC) Corporate Adoption

Tesla is the first among the top-ten global companies to increase its exposure to Bitcoin (BTC). Crypto industry veterans are now positive that corporate America will increase its exposure to Bitcoin. Speaking to Bloomberg, Fundstrat Global Advisors including David Grider said:

“We see fundamental reasons for corporate crypto treasury exposure and expect others to follow suit. We don’t think this happens overnight, but we do think there’s much more room for corporate treasury penetration and expect the trend to continue.”

Fundstrat believes that tech firms are more likely to warm up to Bitcoin quickly than others. However, James Angel, an associate professor at Georgetown University thinks that Bitcoin is just ‘too risky’ an asset. Angel said:

“Corporate cash managers are generally quite conservative and invest corporate cash balances in safe liquid assets. Bitcoin is highly volatile and can easily go up or down 10% in a day or 50% in a year — certainly not a good short-term store of value.”

Will corporate America stay conservative in BTC adoption or make some aggressive bets in a short time? Let us know your views.

The post Bitcoin (BTC) Tops $47,500, Will Tesla’s Entry Spark Massive Corporate Adoption? appeared first on Coingape.

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