Bitcoin Business
ByAuthor J.D. SmithPosted on
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Tesla made $1B profit on its Bitcoin buy, says analyst

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American electric car giant Tesla has seen some massive gains from its Bitcoin (BTC) investment, reportedly having made up to $1 billion in profit, according to a new report.

An analyst at Wedbush Securities, a private investment firm in the United States, has calculated that Tesla has made “roughly $1 billion” in the aftermath of its $1.5 billion Bitcoin investment. Daniel Ives estimated Tesla’s Bitcoin profits in an investor note on Saturday, CNBC reports.

Amid Bitcoin’s parabolic surge to become a $1 trillion asset, Ives said, “Tesla is on a trajectory to make more from its Bitcoin investments than profits from selling its electric vehicle cars in all of 2020.” 

Ives noted that Tesla’s move is likely to affect other public companies. “While the Bitcoin investment is a side show for Tesla, it’s clearly been a good initial investment and a trend we expect could have a ripple impact for other public companies over the next 12 to 18 months,” he wrote. However, Ives expects just a small part of the market to follow the trend due to regulatory uncertainty issues:

“We still expect less than 5% of public companies will head down this route until more regulatory goal posts are put in place around the crypto market, which is clearly starting to gain more mainstream adoption in 2021.”

Tesla officially announced its $1.5 billion Bitcoin investment as part of its filing with the U.S. Securities and Exchange Commission on Feb. 8. It still remains unclear how much Bitcoin Tesla bought and at what price, as the company did not disclose this information in the filing.

As Bitcoin traded between roughly $29,000 and $37,000 in the month of January, a $1.5 billion investment could mean Tesla holds anywhere between 40,000 and 51,000 BTC. At the time of writing, Bitcoin is trading at $56,239, up around 15% over the past seven days, according to data from the Cointelegraph Bitcoin price index.

In late January, Tesla reported its first full-year profit, stating that the company earned $721 million in 2020 after an $862 million loss in 2019.

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Bitcoin Business
ByAuthor J.D. SmithPosted on
1
0

Tesla made $1B profit on its Bitcoin buy, says analyst

BY

American electric car giant Tesla has seen some massive gains from its Bitcoin (BTC) investment, reportedly having made up to $1 billion in profit, according to a new report.

An analyst at Wedbush Securities, a private investment firm in the United States, has calculated that Tesla has made “roughly $1 billion” in the aftermath of its $1.5 billion Bitcoin investment. Daniel Ives estimated Tesla’s Bitcoin profits in an investor note on Saturday, CNBC reports.

Amid Bitcoin’s parabolic surge to become a $1 trillion asset, Ives said, “Tesla is on a trajectory to make more from its Bitcoin investments than profits from selling its electric vehicle cars in all of 2020.” 

Ives noted that Tesla’s move is likely to affect other public companies. “While the Bitcoin investment is a side show for Tesla, it’s clearly been a good initial investment and a…

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Investment Opinion
ByAuthor J.D. SmithPosted on
28
0

DEX goals diverge as SushiSwap (SUSHI) and Uniswap (UNI) rally to new highs

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Uniswap and SushiSwap have emerged as two of the top decentralized exchanges (DEXs) that are leading the current DeFi bull run higher.

Despite a controversial start for SushiSwap, the last few months have seen it catching up to Uniswap in terms of activity on the platform, total value locked, and the price of its SUSHI governance token.

A recent report from Delphi Digital took a closer look at the two projects and broke down the fundamental differences in the way that each has diverged in their development since SushiSwap’s vampire attack on Uniswap.

SUSHI vs. UNI price. Source: TheTIE

SushiSwap originally emerged as a fork of Uniswap v2 with the inclusion of the SUSHI governance token which was distributed to participants of the community.

At the time, Uniswap had yet to launch the UNI token which would subsequently be airdropped to users who had interacted with the…

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Investment Opinion
ByAuthor J.D. SmithPosted on
46
0

Here’s how multi-leg options allow traders to profit from $2K Ethereum price

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This week Ether (ETH) price finally broke through the $2,000 level as aggressive institutional inflow through Grayscale Investments products and declining exchange reserves signaled that buying pressure was increasing.

While many traders are skilled at using perpetual futures and the basic margin investing tools available on most exchanges, they may be unaware of additional instruments that can be used to maximize their gains. One simple way, albeit expensive, is buying Ether call option contracts.

Ether 60-day historical volatility. Source: TradingView

For example, a March 26 call option with a $1,760 strike trades at $340. In the current situation, the holder would only profit if Ether trades above $2,180 in 39 days, a 21% gain from the current $1,800. If Ether remains flat at $1,800, this trader will lose $300. This is certainly not an excellent risk-reward profile.

By using call (buy) options and puts (sell), a trader can create…

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Bitcoin
ByAuthor J.D. SmithPosted on
44
0

Bitcoin pizza all over again — delivery driver reportedly cashes in on $400 BTC tip

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A driver who held $5 in Bitcoin (BTC) as a tip for his pizza delivery services has reportedly resurfaced after seven years.

According to a post from Redditor btcbible, the Bitcoiner ordered a pizza on Dec. 28, 2013 and gave the delivery driver two options for his tip: a $5 bill, or 0.0069 BTC on a paper wallet. The value was roughly the same at the time, given the price of the crypto asset was $774.

However, the driver reportedly contacted btcbible this week for help on getting the funds into a hot wallet. With Bitcoin’s recent rise to a new all-time high of more than $58,000, the BTC is now worth roughly $400, an increase of more than 7,000% since the pizza was delivered hot.

“I let the pizza guy choose between $5 in fiat or BTC,” said btcbible….

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Bitcoin Business Markets
ByAuthor J.D. SmithPosted on
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0

Former BoE, BoC governor Mark Carney joins Stripe board of directors

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After paving the way for digital currency innovation at the Bank of England, or BoE, Mark Carney has officially joined the board of directors at Stripe — a company that’s committed to building new commerce solutions for the internet. 

Stripe introduced Carney as board member on Sunday, where he joins Christa Davies, Diane Greene, Jonathan Chadwick, Sir Michael Moritz and Stripe co-founders Patrick and John Collison. The U.S. digital payments company says it will benefit from Carney’s “extensive experience of global financial systems and governance,” especially as it rolls out new climate efforts.

“The very nature of commerce has changed over the past decade,” Carney said. “Stripe has been at the forefront of enabling this new digital economy, providing innovative and resilient global payment solutions to businesses large and small.”

He continued:

“I look forward to supporting Stripe over the coming years as they build the global infrastructure…

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Bitcoin Blockchain Business Markets Policy & Regulation Tech
ByAuthor J.D. SmithPosted on
19
0

Ripple now registered as a Wyoming business

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Blockchain-based payments firm Ripple Labs has now registered a business in Wyoming.

According to records from the Wyoming Secretary of State, Ripple Markets WY LLC’s status as a local business is listed as “active” after an initial filing in February 2020. As a limited liability company in Wyoming, Ripple’s registered agent will be based in Cheyenne.

“More crypto companies are realizing Wyoming is a better domicile than Delaware due to our crypto-friendly laws,” said Caitlin Long on Twitter.

Long is the CEO of digital bank Avanti Bank & Trust and associated with the state legislature’s Select Committee on Blockchain, Financial Technology and Digital Innovation. She said crypto firms like Ripple should consider relocating to Wyoming due to the state not having any corporate or franchise taxes, and cryptocurrencies being exempt from property and sales tax.

In addition, there is the presence…

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