Now even the most traditional investors in the world are somewhat exposed to Bitcoin's volatility. With a $ 1.5 billion investment in BTC revealed on Monday, Tesla has just added a little bit of cryptocurrency to the notorious S&P 500 index.
Possibly the most well-known ETF in the world, it offers a simple way to invest in the 500 largest companies on the NYSE and Nasdaq exchanges at once. S&P is commonly used to diversify the investment portfolio in foreign shares.
How much bitcoin is in the S&P 500?
According to data from the SEC, the U.S. Securities and Exchange Commission, Tesla had a cash of $ 19.38 billion at the end of 2020, so a billion and a half dollars in bitcoin would equal 7.74% of the company.
Elon Musk's electric car company joined S&P at the end of last year, becoming the fourth largest position in the index, behind only Apple, Amazon and Microsoft. Approximately 1.98% of the index is composed of TSLA, shares of Tesla Motors, a bitcoiner company.
Considering a market cap of 31.31 trillion reported by the S&P 500 on January 31, 2022, Tesla's $ 1.5 billion bitcoin amount is still a small part, but it's amazing to see how millions of investors are suddenly exposed to this new asset class.
More companies must follow in Tesla's footsteps
According to Michael Saylor, CEO of MicroStrategy who holds more than $ 3 billion in BTC, if Elon Musk transferred his dollars to bitcoin, other S&P companies would follow in his footsteps.
On December 20, 2020, Saylor tweeted to Musk:
“If you want to do your shareholders a $ 100 billion favor, convert the TSLA balance sheet from USD to BTC. Other S&P 500 companies would follow his lead and over time this would grow to become a $ 1 trillion favor. ”
At the time, Elon was still interested in the investment, asking if such large transactions were even possible. "Yes, I bought more than $ 1.3 billion in BTC in the past few months and would be happy to share my playbook with you offline – from one rocket scientist to another."
Interestingly, the investment revealed by an official SEC document on the 8th was just over 1.3 billion. Elon Musk really does seem to be a competitive person.
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