The recent seesaw in Tesla shares unnerved both the company’s shareholders and Bitcoin investors. A slump in Tesla quotes fueled worries that the shares of the electric vehicles manufacturer could drag down the number one cryptocurrency.
Earlier, Tesla bought $1.5 billion worth of bitcoin. The news was welcomed by crypto investors but caught Tesla shareholders off-guard. Tesla CEO Elon Musk ventured to invest in Bitcoin that afterwards yielded a hefty profit. Nevertheless, Tesla investors took this investment decision with a pinch of salt and rushed to close long positions on Tesla shares. Massive profit taking entailed a sharp drop in Tesla stock quotes. The shares plummeted over 30% in a flash.
Interestingly, Elon Musk’s company is not the only one which has fallen prey to the venture of benefiting from the dazzling rally in the crypto market. MicroStrategy was one of the first firms which decided on the experiment with corporate Bitcoin investments. Since February 9, its shares have tumbled over 50%. Eventually, the shares of both Tesla and MicroStrategy became dependent on Bitcoin’s dynamic. With such humongous investments, this comes as no surprise. At present, MicroStrategy Inc is the largest Bitcoin corporate backer as it owns 90,859 BTC that is equivalent to $4.3 billion. Tesla holds 48,000 BTC worth $2.58 billion.
A couple of years ago, no one would have imagined that the stocks of hi-tech giants like Tesla and MicroStrategy would ever be pegged to a dynamic of a particular asset. Importantly, Tesla shares have been able to regain footing after a nosedive.
